5 things you should do when a customer hasn’t paid

5 things you should do when a customer hasn’t paid

Chasing a customers who hasn’t paid on time can be a real counter-productive chore.

Chasing unpaid invoices is a very timely chore and the indirect cost of such tasks are never accounted for. When you have a customer hasn’t paid, It is all too easy for frustrations to boil over.

The reality of the situation is that it really does pay to keep composed and apply some business logic to achieve a successful outcome.

Quite often, you are too focused on trying to bring new business in and the ‘do not want to pay’ brigade can sometimes slip anyway. It is never a good idea to write off unpaid invoices or overdue accounts for that matter, there is always a way.

When a customer hasn’t paid, it is essential to take action when necessary. Every day we receive calls from frustrated small business and SME owners perplexed with other companies and individuals who are just dragging their heels when it comes to payment.

We thought it an idea to put together a quick 5 top tips when a customer hasn’t paid

1. Credit control – Ensure you have a solid in house credit control procedure. This will minimise the ‘non-payers’
2. Remain composed – Easy to lose your temper when somebody is not paying you for works/goods you have provided in good faith.
3. Never write the debt off – Regardless of the amount, it pays to stay on top of the situation and reclaim money that is quite rightfully yours.
4. Send a letter before action – Sending a letter before action can make sure your customer is aware that you are serious about getting paid.
5. Call Federal Management – This will save you time and money! – Let the experts help. Its what we do and are very very good at it. Our success has been built on recovering debts for the past 13 years and we know what we are talking about We will give you a free appraisal of the situation and advise if we can help along with the realistic probability of a full recovery.

The business of recovering debt far more complex than people think. We have developed strategies and procedures that are guaranteed to maximise the potential of a successful collection.

Let us take the strain, we are the Professionals used by the Professionals. Chasing unpaid debts is a negative aspect and does nothing for a positive mindset that is needed to grow.

You do not pay us per action or by the hour, we only charge for our successes. It is that simple and the reason why our services are used by some of the biggest and smallest names in the UK Business world.

Do something positive today, start now and speak to our friendly New Business advisers by calling us on 0333 043 4420

Common questions when a customer hasn’t paid

What is the best way to prevent a customer not paying?

The best way to prevent a customer not paying is by having clear payment terms that are agreed between you both prior to the work or goods being provided. It’s also important to ensure that your invoices contain all of the relevant information and always be sure to follow up on late payments.

If you still find yourself in a position where a customer has failed to pay, there are steps you can take:

1) Contact the customer – Make contact with the customer as soon as possible, if it is apparent that they have no intention of paying then don’t wait around as this will only make matters worse.

2) Offer a settlement – If their payment is overdue then offer them an incentive to settle early, such as a discount.

3) Seek outside help – If all else fails, you may need to seek advice from debt collection experts, such as Federal Management, who can provide bespoke professional solutions for businesses in the UK.

Is this a common occurrence for Small Businesses?

Unfortunately, yes. Small businesses are particularly vulnerable to late payments and this can have a negative impact on their cash flow. Therefore, it’s important for companies to be proactive in chasing outstanding debts and take steps such as those outlined above to ensure they get paid on time.

The team at Federal Management understand the importance of getting paid on time and therefore provide sound advice and expertise when it comes to resolving debt collection issues. Whatever your situation is, you can rest assured that our experts will work with you to find an effective solution.

How long will it take to recover a debt when a customer hasn’t paid?

The amount of time it takes to recover a debt depends on the individual circumstances and the actions taken.

If you are trying to collect a debt yourself, it can take some time – this is why Federal Management’s services are so valuable as our team are experienced in dealing with these types of issues.  We understand how important it is to get paid on time and will work hard to ensure that your debts are collected quickly and efficiently.

Contact us today for more information about how we can help.