5 Steps you can take to Get Paid!
There are always some companies that have past due invoices and
can't seem to get them paid. They might be quietly waiting to
get paid not wanting to contact the client for fear of appearing
"desperate". Sometimes a big part of the problem is no response,
it is bad enough when you are not getting paid, but when orders
keep coming in and you are not getting any acknowledgement to
your collection efforts, you just can't keep processing orders.
There are steps you can take to get paid on those past due
invoices and keep new invoices current.
Step #1 Gather together all the past due invoices, and stamp
them PAST DUE. Step #2 If you have an email address or phone
number with a contact name for your client, email them or call
them and give them the information on the past due invoices and
let them know their account is on hold. Step #3 Mail the
invoices to your client with return receipt requested or send
them in a flat rate Priority Mail envelope with delivery
confirmation. Step #4 Send a letter with these invoices stating
the age, invoice numbers, their PO#, your account #, total
amount due, and any other pertinent information. Step #5 Tell
them their account is on hold and you will not be shipping any
more products or providing any services to them until these
invoices are paid. You can include a self addressed envelope and
state that you have enclosed an envelope for them to send their
check. Give them a date, to have this paid to you.
Once they have received the package, email or call them. Ask
them what they are doing with the invoices. Ask them questions
such as:
Do they have to be approved by someone else? If they have to be
approved, who has to approve them and when will they give them
to that person? Get that person's direct number if possible.
Find out if that person signs the checks. Are there any
discrepancies with the invoices? When will the check be cut?
When can you call back for the check number?
Once all the past due balances are cleared up, you need to think
about future invoices. Do you want to extend credit again or do
you want to have pre-payment or payment at the time of the
order. Whatever you decide put it in writing. If you can both
sign the agreement, that is even better. Remember, having a
credit policy in place tells people you mean business.