7 Ways Small Business Owners Can Collect Unpaid Invoices

Even with contracts in place and after years of relation, small businesses face a cash crunch and unpaid invoices from time to time. Even when you set out terms in your online invoicing software, you often encounter past-due invoices. Now, we are not talking of invoices that are a week or 10 days late, but the ones that are a month late or even more. The first thing you need to do is avoid the panic and take these steps to sort out these issues. 

1. Identify Due Invoices 

If you find yourself too tied up to keep track of invoices, you need to invest in good online invoicing software. Another thing which you can do is to set a fixed time to deal with such invoices. With filters offered by online invoicing tools, you can easily segregate pending invoices and automate the whole process. Once you are done, you will need to take further steps and carry on the process. 

2. Send Emails 

You can either choose to send emails from your official ID or schedule it via your online payment software. All you need to do is draft a polite email stating that your invoice is due and action is required on the client’s end.  Your client might be dealing with some issues too. 

While it is good to be considerate make sure you don’t overdo it. Also, make sure to check the dates of the invoice in your online invoicing software, mention them in the email body, and attach the original invoice too. This will keep your records clean and the client will get a reminder too. 

3. Try Texting or Social Media DMs

When you are not getting any mail responses, try out a few other ways. These include dropping them a text on their official number or approaching them via social media DMs. If the response, it will be good for you and you will be able to settle your payments faster. Don’t forget to acknowledge their payments with a thank you note and receipts. Luckily, you can eliminate manual labor, as the receipt maker app does it all for you! 

Unpaid Invoices

4. Drop A Final Reminder Email 

In the worst-case scenario, you will need to drop a final reminder email and even mention that some action will be taken, if the client doesn’t oblige now. But, make sure you exude professionalism in all your written communication.  Also, send out a copy of payment terms recorded in your online payment software, to reinstate facts. 

5. Hop on A Call

When written communication fails to get any results, it is time to move to calls. This might not be the most pleasant thing to do, but you will need to do it for your business. Call them on their official number to get things sorted and see if there are any misunderstandings, underlying issues, or even errors in your invoice. 

6. Stall Your Work 

While this might seem unprofessional, sometimes you don’t have a choice. You might be working on a live project or even a confidential one. But, that is no excuse for making late payments and not communicating the same. However, make sure you have everything in written and record the same. This will be useful if you need to visit the court or seek legal help for getting your payments cleared. 

7. Contact An Agency 

Even after multiple attempts of communication, if your client fails to oblige, contact a collection agency. These agencies usually collect a percentage of your revenue and slap a legal notice on your client. If it has been more than 3 months, make sure you use this method without hesitation to get your money. Also, keep a record of all receipts made using the receipt maker app to have clean records. 

Wrapping Up

These were just a few ways to collect unpaid invoices and make your processes smooth. The right action at right time can save you from poor cash flow. So, make sure you use a good receipt maker app and online invoicing software to stay updated with all information. Still looking for the perfect online payment software, let us know how we can help you with the same!

Yuvraj kore

Welcome to our blog! My name is Yuvraj Kore, and I am a blogger who has been exploring the world of blogging since 2017. It all started back in 2014 when I attended a digital marketing program at college and learned about the intriguing world of blogging. As I started to learn more about blogging, I realized that this platform has immense potential to share ideas, experiences, and knowledge with the world. The more I dived into it, the more passionate I became about blogging. My passion for blogging was fueled by the mentorship and guidance of Akshay Sir from Goa, who was instrumental in teaching me the ropes of this exciting world. Under his guidance, I honed my blogging skills and gained valuable experience, which I am happy to share with my readers.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button