![]() Knowing how to communicate without burning your client relationships can be a delicate balance. At some point, you may even need to hit “pause” on services rendered until the invoice is paid. This will be invaluable if you need to escalate things further. Include who you talked to, the date and the time. When do you think you can make the payment?Īlways keep records of your correspondence (both via email and over the phone).Do you have any issues with the invoice that we can address while I’m on the phone?.Did you receive my last email about the overdue invoice? (quote the invoice number if necessary).If email doesn’t work, pick up the phone to ask if your client received your previous emails. Remember to include a copy of the invoice in each email. If the company you’re working with has an accounts receivable department, ask your contact if it would be appropriate to reach out to them directly. When reaching out, make sure you’re speaking to the right person. If your payment terms are 30 days after receipt of invoice, don’t chase up on day 30 wait a few days and send that first reminder. We’ll give you a template for this in the next section.ĭon’t be too eager to follow up, either. Remember, you don’t want to burn client relationships with harsh language. Make sure that the first reminder is friendly. A friendly reminder might be all that’s needed. Sometimes, things slip through the cracks, and people forget. The first important step is to keep calm. You’ve sent your invoice, and the client has missed the payment date. Incorrect information can cause delays or disputes, so always ensure amounts, dates and client details are accurate before sending. Just make sure you make this absolutely clear to your client when beginning your relationship.įinally, make sure the information you include on your invoice is correct. This legislation allows you to claim up to 8% interest on unpaid invoices. The law allows you to do this, thanks to the Late Payment of Commercial Debts (Interest) Act 1998. You can also deter late payments by including interest terms in your agreement. Top Tip: To see a list of the key features that an invoicing software solution should include, as well as our picks for the best solutions available on the market today, read our guide to the 11 best invoicing software solutions for your small business □ Instead, use an intelligent business account with integrated invoicing (such as Tide invoicing). It can be hard to keep track if you’re constantly creating invoices manually and sending them via email every time. Make sure to have your “accounting house” in order, too. When setting these expectations, make sure you cover the following: Then, review these conditions during your kick-off calls and onboarding process. When both parties are ready to sign a contract, there should be no surprises. ![]() Start by outlining your payment terms from the first proposal you send to a client. The best way to ensure any overdue invoices are paid is to set expectations from the beginning of your client relationships. Ways to reduce invoice follow-up stress.Setting expectations & charging interest.To learn more, read our guide to raising an invoice and getting paid □ Top Tip: Before we dive in, it’s important to understand the basics of creating an invoice in a way that incentivises prompt payments, as well as what common mistakes to avoid. In this quick guide, we’ll cover how to get your invoices paid without burning client relationships and make sure you get paid fast. That amounts to an average of £8,500 being owed and 1.5 hours per day spent chasing late payments.īut no need to panic! There are several ways to manage an overdue invoice, no matter the state of your client relationship. We surveyed 1,000 CEOs, founders, directors and senior management staff at SMEs and found that the average UK SME is chasing five outstanding invoices at any one time. But the payment is overdue, and you haven’t received a response or update.ĭon’t worry-you’re not alone. You’ve delivered on your work, set your payment terms and sent an invoice to your client.
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