How To Collect Overdue Payments From Clients

How To Collect Overdue Payments From Clients

In order to collect overdue payments from clients efficiently, you need to have a process in your business that is well-oiled.  Whether it is your credit control team, or you as the owner doing the collecting, if you have a plan and follow it through you will increase your cashflow in your business.

We always advise clients that to collect overdue payments from clients you need to have 3 qualities: persistence, tenacity and determination.

To give you the best chance of succeeding at collecting your overdue payments, we have put together a 3-step process that will boost your cashflow instantly:

Step 1:

7 days before your invoice is due call your customer make sure they have a copy of the invoice

Step 2:

On due date (usually 30 days) call or email your customer to remind them payment is due and ask them for a payment date (if they need a reason, it’s so you can schedule this into your cashflow forecasts)

Step 3:

7 days after the due date, remind them the invoice is overdue and continued non-payment will result in Interest and Charges being added to their account

Collect Overdue Payments

If they still continue to resist payment after this stage you should contact a 3rd part debt collection agency to help collect overdue payments from clients because you never want to waste too much time on non-paying customers.

Be strict, and clear about your procedures to your customers BEFORE you do business with them and they will soon learn that you are serious about doing business, and you will soon improve your ability to collect overdue payments from clients.

If you would like to chat through any problems your business faces with overdue payments from clients, or would like to improve your cashflow with 3rd party collection agencies, please don’t hesitate to contact us on 0800 069 8777 or email enquiries@tauruscollection.com, or visit our website www.tauruscollections.com

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