If your customers are paying you late you need to get on top of it today.

Below is our suggested process. Don’t be embarrassed - you’ve provided goods or a service for free at the moment, and that needs to be fixed.

Both Xero and QuickBooks have in-built reminder emails you can make use of. Assuming 30 day credit terms:

Send if an invoice is due in 7 days, as you don’t want to be too pushy (you could also trial sending at 14 days due as well):

EMAIL SUBJECT: <<your-company-name>> invoice <<invoice-reference-number>>

BODY TEXT:

Hi <<recipient-first-name>>,

Hope you’re having a great week.

Just a gentle nudge that your invoice <<invoice-reference-number>> is due in 14 days. It would be great to know that you’ve received the invoice and if you have scheduled a payment, please let us know what date we should expect it, and I'll make a note to stop these reminders.

You can also view and pay the invoice online via this link: <<online-invoice-link>>.

All the best,

<<sender-first-name>>

Send if an invoice is due in 0 days:

EMAIL SUBJECT: <<your-company-name>> invoice <<invoice-reference-number>>

BODY TEXT:

Hi <<recipient-first-name>>,

Hope you’re having a great week.

Just a gentle nudge that your invoice <<invoice-reference-number>> is due today. Can you confirm we’ll receive payment please? Many thanks.

You can view and pay the invoice easily online via this link: <<online-invoice-link>>.

All the best,

<<sender-first-name>>

Send if an invoice is 3 days overdue:

EMAIL SUBJECT: <<your-company-name>> invoice <<invoice-reference-number>>

BODY TEXT:

Hi <<recipient-first-name>>,

Me again. Just another nudge that your invoice <<invoice-reference-number>> is now 3 days overdue. If you are facing payment issues, please contact us immediately as we rely on prompt payment from our customers as per our agreed credit terms.

Interest is accruing at X% per day.

You can view and pay the invoice easily online via this link: <<online-invoice-link>>.

I look forward to hearing from you,

<<sender-first-name>>

Send if an invoice is 14 days overdue:

Once a payment becomes overdue, you are legally entitled to add interest and compensation to an overdue payment. If you choose to employ these rights for your business, make this clear in your letter.

EMAIL SUBJECT: <<your-company-name>> invoice <<invoice-reference-number>>

BODY TEXT:

Hi <<recipient-first-name>>,

Me again. Just another nudge that your invoice <<invoice-reference-number>> is now 14 days overdue. If you are facing payment issues, please contact us immediately as we rely on prompt payment from our customers as per our agreed credit terms.

Interest is accruing at X% per day.

You can view and pay the invoice easily online via this link: <<online-invoice-link>>.

I look forward to hearing from you,

<<sender-first-name>>

If no payment has been received 20 days after the due date.

Pick up the phone. Make this part of your credit control policy. You are not a bank for your customers, and by talking on the phone or online via a video call, often things can get sorted quicker. You may need to offer a payment plan if they are in difficulty.

Use the Flow In customer payment trends every week to get ahead of possible negative factors that could be about to hit your business.

Did this answer your question?