When it comes to chasing payment of overdue invoices, it is essential to strike a balance between politeness and assertiveness. Whilst being polite is generally a good approach, sometimes businesses can unintentionally hinder their own cash flow by being too lenient.
Politeness is a virtue, and it should not be abandoned when dealing with clients. However, excessive politeness when it comes to chasing overdue invoices can have financial repercussions for your business.
Late payments can disrupt your cash flow, hinder growth opportunities, and strain your working capital.
It is crucial to find a balance that ensures prompt payment while maintaining a professional relationship. Effective communication is key to resolving payment issues.
When invoices become overdue, promptly reach out to the client with a clear and concise message reminding them of the outstanding payment. Be polite yet assertive. Set clear expectations for payment deadlines and any consequences for non-payment.
Politeness does not mean passivity. Establishing a structured credit control process ensures that you consistently pursue overdue payments without unnecessary delays.
Chasing payment of invoices in an ad hoc and unplanned manner, will likely leave you further down the queue when a client is deciding who to pay first. Those with the best credit control processes, are less likely to have to do the chasing.
In cases where all attempts to recover the debt have failed, it might be necessary to consider legal action. Over a million civil claims are started at court each year, the vast majority without any lawyers being involved.
We can teach your staff how to bring simple legal claims for payment, at court, so that you can avoid the cost and delay of using solicitors.
The Elephant In The Room – Are You Being Too Polite When Chasing Payment Of Overdue Invoices?
