5 Ways to get your outstanding invoice paid
1. Write an email as a first attempt
When an invoice slips through the cracks, a gentle nudge with an email can work wonders. After all, chances are your customer has simply forgotten about their bill.
Make sure you keep your email short, yet friendly. You want to make sure you get your point across early without burning bridges.
Remember to reattach the invoice and include the due date (and any late fees if they were included in your initial agreement). Here’s an example, feel free to use it:
Subject: Has our invoice slipped through the cracks?
Email:
Hi [Customer’s Name],
Just a quick reminder that we’re waiting on payment for Invoice #[Invoice Number].
The invoice was due on [Due Date], so if you can pay that today it’d be greatly appreciated.
It’s easy for emails to slip through the cracks, so I’ve attached the invoice to save you hunting for it.
If you have any questions, feel free to call me on <Phone number>
Thanks,
[Your Name]
There you have it. Short. To the point. Firm but friendly. Hopefully an email does the trick, but if not, you can always pick up the phone.
2. Make a phone call for a personal touch
Sometimes a personal touch can speed up the invoice payment process. A brief, courteous phone call demonstrates your commitment to resolving the issue amicably. Politely remind your customer about the overdue payment and discuss a timeline for settlement.
A phone call also gives you the chance to discuss other business with your customer. Oh, and remember to keep notes of the conversation for future reference.
3. Charge a late payment fee
Including late payment terms in your initial agreement can act as a deterrent for future delays. Make sure your invoices clearly state your payment terms and any applicable late fees. This encourages customers to make timely invoice payments.
4. Cutting off services is firm but fair
In cases of persistent non-payment, consider suspending your services until the outstanding invoice or overdue amount is settled. While this step might seem drastic, it emphasises the seriousness of the situation and motivates customers to prioritise prompt payment so normal service resumes.
5. Debt collectors are the last resort
When all else fails, call in a debt collection agency. These professionals specialise in recovering unpaid debts and can apply the right amount of pressure to ensure resolution.
This step should be a last resort. Chances are the relationship between you and your customer has soured and ending commercial ties may be best for both parties.
Ignore all that – get paid the easy way
Sure, you could spend your days writing emails and making phone calls to late-paying customers. Or, you could let Business+ Invoices do the hard work for you.
Business+ Invoices lets you to generate professional-looking invoices (for free by the way1), right from your Business+ banking profile.
Your invoices will be sent directly to customers via email, and they can pay using their card, Apple Pay or Google Pay (using Stripe, our partner payments provider), PAYID or old-school BSB and account number. Business+ Invoices also sends automatic payment reminders to follow up late-paying customers so you don’t have to.
The bottom line
No one likes chasing debts, but if it has to be done, find the path of least resistance. Remember, maintaining a healthy cashflow is vital for the sustainability of your small business.
From friendly reminders to putting your foot down, these simple steps can help you find the delicate balance between preserving relationships and getting invoices paid. It’s just good business.
Remember to check out our Business Hub. You’ll find heaps of free resources and plenty of helpful information to keep your business humming.
