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How To Chase Overdue Invoices From Clients Effectively

Chasing invoices can be a real challenge. No one likes to chase but for the sake of your business someone has to do it. But how?

Following up on late payments and overdue invoices can feel like a wild goose chase, so let’s start by understanding the field of play and see how to pursue effectively. Over half of invoices will go past their due date, knowing that baseline can help you react appropriately to different late-payment situations.

So say you have an invoice that is due for payment, it’s time to begin the chase.

Effectively chase overdue invoices from clients

1. Email

The first and least daunting way to prompt your customer is by email, a polite written reminder quoting to invoice number, saying when it was due, and asking when you can expect payment, might be all it needs to get it over the line. Attach the original invoice for even more clarity.

2. Phone Call

It may seem old fashioned, but one of the most effective ways to secure payment is to follow up with a phone call. It can feel awkward but it’s awkward for the customer too - that’s why it works!

If the customer dispute an aspect of the invoice, try organizing payment for the rest of the invoice excluding the disputed items.

It is good to take notes here so you can keep track of what they have committed to, and if it is still late do not be afraid to call again.

What if the customer just doesn’t end up paying you? You could try a few different things.

1. Agree on a payment plan

This maybe needed if the customer is low on cash. Figure out what the customer can afford, across what period of time, and make sure you keep track of what payments is going towards which invoice.

2.Stop supplying the customer

Doing this can signify the end of the business to customer relationship, so make sure you can live with that. At the end of the day, non-paying customers are bad for business.

3. Debt collectors

These serious debt collection agencies have a knack way of getting overdue invoices paid. By referring the overdue invoices to debt collectors shows the clients that you are serious about collecting the debt. This can be extremely effective in recovering payments without actually having to proceed legal actions.

Xservice Debt Collection is a licensed debt recovery agency with experienced debt collectors and professional credit managers. We specialise in commercial debt collection, credit management for small to medium sized businesses and have a strong desire to do the very best for our clients with affordable rates. Proceed with Xservices also means you'll have a chance to recover the debt without paying legal fees, and won't lose the opportunity for legal actions. Our services cover Melbourne (VIC), Sydney (NSW), Brisbane/Gold Coast (QLD) and Perth (WA). For more information, contact us today to arrange a free consultation.


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