A professional way of asking for money from your clients is to request them politely but clearly. Small businesses should follow up with their clients right after the first due day of payment. Ensure that your customer receives the invoice and then proceeds further.
The initial stage is to send an invoice with product and billing details. If the customer fails to pay before or on the due date, the next step is to send an overdue invoice. If you still did not get any positive response, then try a phone call. Contact your client through a call and ask for your due payment. The last and final step is sending a legal notice, but that is rare; it happens when the client is not willing to pay your dues.
Small businesses should follow the following steps while asking for due payments from their clients:
1.Confirmation For Receiving An Invoice:
The first step is to confirm from your client whether they receive an invoice or not. You should write a professional email to your client to tell them about the due payment. You should confirm the collection of invoices by your client to proceed further.
2.Write A Brief Email To Request Your Payment:
If it’s a week overdue of payment deadline and you did not receive any positive response from your client, the next step is to write a brief email to them. You should remind them of the previous emails and invoices and acknowledge them about the total due amount they have to pay, along with the late payment fee (if there is any). Attach the old invoice with email before sending it to your client.
It is preferable to send short emails at regular intervals before and after the payment due date.
3.Contact Your Client Through A Phone call:
If you didn’t receive your payment for invoice even after sending an email, you should directly contact your client through a phone call. Remind your client about an email and invoice and tell them that it’s too late in paying their dues. You can also secure payment via credit card or online transfer. The other way is to get the final confirmation of the date for making payment from your client. You should keep calm and friendly tone throughout the call to maintain good terms with your clients in the future.
4.Cutting Off Future Work:
If your client is not paying the overdue invoice despite many reminders and phone calls, you should take a harsh step. You have to cut off all the future deals with them and send them a notice or email to inform them about your decision. You should explain all the reasons for taking this step. It may hit the client and motivate him to pay the dues immediately. You need to stay calm and professional while addressing your client to avoid any tensions.
5.Approach Collection Agencies:
If your previous efforts for collecting payment fails, then you should hire a reputable collection agency for this purpose. It will help you get your due payment from your client. It may cost you a lot, but something is still better than nothing. It may deduct 50% of the amount it recovers, and the rest is yours.
6.Review The Legal Options:
If you are still unsuccessful after all the possible efforts, you should take a final step. You should file a case in the court with all the proofs, including invoices, emails, call records, and other contractual documents. For a small business, you can take a client to a small claims court.
The other topics this article covers are:
Professional Payment Request Email Templates
First Email Payment Request Template
Subject: [Your Business’s Name]: Invoice #001 Past Due
Hi [Client’s Name],
I hope you’re well. It is a reminder that Invoice #001 was due on Thursday, November 30, and is now one day overdue. I know I sent the invoice at a busy time and want to ensure you received it. I’ve attached the original invoice to this email.
You can send payment by check or pay by direct transfer. Please let me know if you have any questions about the invoice.
Thank you,
[Your Name]
[Your Business Contact Details]
Second Email Payment Request Template
Subject: [Your Business’s Name]: Invoice #001 Past Due
Hi [Client’s Name],
I hope you’re well. I’m contacting you regarding invoice #001. It is a friendly reminder that the payment was due on Thursday, November 30, and is now two weeks past due. Please send payment as soon as possible by check or direct transfer.
As per my payment terms, I will add a late fee of 2% per month for overdue payments.
I’ve attached the invoice to this email for your reference. Please let me know if you have any questions.
Can you please confirm that you’ve received this email? Looking forward to your reply.
Kind Regards,
Your Name
Your Contact Details
How Do You Get Overdue Payment from Clients?
You need to stay calm and professional while asking for due payment from your clients. If you didn’t get any positive response after the initial requests through email and invoice, then you should call them directly. Politely request for your due payment. If it also didn’t work, then you need to proceed further.
The next steps may include:
Cut off all ties for future business with them.
Take help from collection agencies.
File a case in small claims court
File a civil lawsuit
To avoid any tension in the future, you should set some rules for your business. Add late fee on late due payment. Prepare a legal contract for on-time payment and ask your client to sign it.
For more useful information, browse the resources guide today!
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