Late payments can be a huge problem for your business, especially when it comes to disrupting cash flow and hindering growth. Whether you’re a small startup owner or managing a larger business, chasing overdue invoices can be time consuming and stressful. Thankfully, there are ways to take action.
How to Approach Chasing Late Payments
Regardless of what your business does or the industry that you work in, late payments can be hugely stressful, and this includes unpaid invoices. But, there are things that you can do to help.
- Check the Invoice – Before you follow up and chase an invoice, it’s a good idea to check that it’s correct. Check the due date, amount and payment terms, and ensure that the information is complete. You don’t want to chase a payment, only to find it’s not yet due. Incorrect or missing information could be the reason a payment is late.
- Contact the Right Person – You need to make sure that you’ve sent the invoice to the right person, and they might not necessarily be the person you have been in contact with so far. You might need to contact the accounts department, but not all businesses have a dedicated accounts team. To avoid late payments, make sure that you have sent the invoice to the right person, and then make sure that you’re chasing the right person. If you’re not, ask for their information.
- Double Check the Due Date – You need to be completely sure of the due date when you’re chasing a late payment, as the person you’re chasing might have a different idea. The majority of businesses will pay outstanding invoices within 30 days, but this could mean 30 days after the end of the month in which you send the invoice. If the exact due date wasn’t agreed at the beginning, you might disagree on the date it becomes overdue. This is why it’s important to establish clear payment terms.
- Call a Debt Collection Agency – Chasing late payments can be time consuming and stressful, which is why a lot of businesses choose to call in a debt collection agency. With expertise and experience in chasing late payments, we’re able to help your business by taking care of everything. We use our various tools and techniques – all of which have been tried and tested, so we know they’re effective – to ensure you are paid as soon as possible. We understand how stressful late payments can be and the impact they have on cash flow, and so we work tirelessly to recover funds quickly.
Enlisting the help of a debt collection team simplifies chasing late payments. Instead of spending your own time chasing overdue payments, you can hand everything over to us. You can relax knowing that your payments are being chased by professionals, and focus your attention on other aspects of running your business. Get in touch to find out more.
