Overdue Business Invoice Collection – No1 Advice Guide

Overdue Business Invoice Collection – No1 Advice Guide

One of the main objectives of any business is to make enough money to support and further grow itself.

Regardless of whether you are a large business or a contractor not been paid for work, your invoices deserve payment.

It may surprise you to know that the simple process of providing services and getting paid is made difficult sometimes.

The occurrence of late invoice payments is sadly common for large and small businesses in all industry sectors.

Barclays reported that around 3 in 5 UK businesses are owed money as a result of late payments.

When invoice payments become overdue, this will cause cash flow problems that threaten the longevity of your business.

Continue reading our helpful guide on how to effectively undertake overdue invoice collection for your business.

What Is the Invoice Collection Process?

Make sure that invoice details are correct

Before sending out the invoice to the client, you must check all of the information is correct.

This document is responsible for getting you paid, and if details are incorrect then the debtor has the right to dispute this.

Specific attention should be paid to the name, address, order numbers, purchase orders, costs etc.

If all details are correct, this should naturally reduce the number of invoice payments that need chasing.

Send out the invoice on time

It is no secret that sending the invoice to the client on time will result in a higher chance of getting paid on time.

This will give them a prior warning of the date the invoice needs to be paid, giving no real excuse to miss a payment.

Modern credit control or accounting software can do this for you automatically, which can help reduce the internal resources needed to ensure this happens.

Outline the terms and conditions of payment

At the onset, you should discuss any payment terms that may be on top of general terms and conditions.

This could outline that you intend to claim interest on any late payments, or that you wish to start legal action or court proceedings against the debtor.

The threat of legal action is known to be enough to negate any invoices payments becoming late.

Discuss payment plans with your debtor

If the client simply cannot pay for the invoice, it may be beneficial to discuss a payment plan with them.

This will split the cost of the payment up into smaller amounts, which will make it easier for them to pay.

Whilst you may not be receiving the full amount upfront, you will have peace of mind that this will be paid off bit by bit.

The Solution for Unpaid Invoice Collection

Whilst the above invoice collection process is known to get the client or customer to pay, debtors may simply refuse payment.

When this happens, the best solution is to use a commercial debt recovery service to collect payments concerning the overdue invoice.

Federal Management is one such agency and has been providing business debt collection services for its clients since 2004.

Despite our low debt recovery costs, we boast the highest success rates across the industry of 90% and above.

If you require a commercial debt collection agency, contact our specialist agents today.

Invoice Collection – Frequently Asked Questions

What is the best way to undertake overdue invoice collection?

There are many ways to recover overdue invoices, however, the best option is to use a debt collection agency.

How long should I leave it to speak to a professional?

It is a standard procedure for invoice due dates to expect payment within 30 days. If this time is exceeded, that is when you should contact Federal Management to recover the invoice.

What happens during the invoice collection process?

Once you have contacted us, we will ask you to provide all relevant documents related to the overdue invoice. From there we will advise on the likelihood of debt recovery success.

How can I trust Federal Management to recover my overdue invoice?

Since 2004, our debt recovery specialists have recovered millions of pounds worth of unpaid invoices. We are authorised and regulated by the Financial Conduct Authority, further displaying our high calibre service.

Does it take a long time to recover a debt?

Whilst we cannot provide an accurate collection time for debts, we ensure to recover this as quickly as possible. This is achieved by the types of effective debt recovery tactics we use.

Posted on April 20, 2022