Running a Business these days can be difficult enough without being faced with the issue of a Business Customer that has not paid. Recurrent invoice payments from your Business Customers should be a given however that is not always the case. Depending on your sector, many Companies and Small Businesses alike have to deal with problematic and non paying customers.
The way your Business Customers pay should be in a simple, effective and streamlined process. This is made all the simpler if you have adequate credit control in place to deal with any non payment of invoices. Regardless of how rigorous your credit control is, the actual act of payment is down to your Business client and this does not always go to plan.
When is appears payment is not forthcoming and it becomes apparent that your best efforts are not working, you need to take step back at look at the available options. It is all too easy to become frustrated but Business is Business and not everybody has the same ethics as you.
Some Business Customers will deliberately wait to the very last minute and some Business Customers will just try to evade making any payment at all. If you are facing a difficult Business Customer who has not paid despite your best efforts, it is probably time to take some form of action.
Send a 7 day Payment request letter
If you have arrived at this point, it is likely that your goodwill has been exhausted. You will have already tried the normal route to get paid such as phone calls, emails and a maybe even a text.
It is important to provide a final opportunity for them to pay. No Business wants a Business Customer that has not paid so taking positive steps is always a good thing. Issuing a 7 day payment letter will signal your intention to get them to pay. Sometimes, people in Business think they can ignore their dues and it will go away. This should never happen.
The letter that you send should contain all relevant details pertaining to the amount due. It should state the original payment terms, the amount and the fact that you intend to escalate the matter if payment is not made immediately.
At this point, the Business Customer should reach out to you and advise what the issue is, regrettably as you are already probably aware, some do not. If they do not then it is the time to seek some Commercial and Small Business Debt Collection help.
7 Day Payment Request Letter ignored
At this point, you really need to consider your options to proceed on this. A Business Customer that has not paid with no valid reason has to be acted on. Goodwill does not pay the bills and no Business need Business Customers that do not pay. It was recently reported that 75% of SME’s were unsure of taking Debt Collection action. This should never be the case especially if your Business Customer has blatantly ignored your payment requests.
At Federal Management, we speak to Business Owners every day that have not been paid by their customers. We can assess the situation, run financial checks on the debtors and establish the Financial ability to pay. Our initial consultation is completely free of charge and will provide you with a valid insight into the situation. In addition, we can advise you on the best possible course of action and the options available.
Thousands of Businesses crash every year due to not taking a pro-active stance on Business Non Payment. If you have a Business Customer that has not paid, speak to our FCA Regulated Advice team today for a friendly chat. All enquiries are without obligation and we help thousands of Businesses every year recover millions of pounds owed to them with our Award Winning Business Debt Collection services.