Unpaid Invoices – 2 things to consider
If you are a small business owner then chances are that at some point you have encountered unpaid invoices. You have sent out an invoice and the payment is slow to come in. Even worse, the payment of the invoice never comes in at all.
With the current economic climate, unpaid invoices are steeply on the rise. According to a research by Barclays Bank earlier this year, three out of five Businesses have issues with unpaid invoices. There are a few things you can do to try to mitigate the risk of non-payment, but sometimes it can just be unavoidable. So what do you do when you are faced with unpaid invoices?
The first step is not to panic. It is easy to become frustrated and upset, but it’s important to remember that this is a business transaction and you need to approach it as such. The second step is to reach out to the customer and try to figure out what the problem is.
There may be a perfectly good explanation for why the invoice is unpaid, and if you can resolve the issue quickly and amicably, that’s the best case scenario. However, if the customer is unresponsive or unwilling to work with you to resolve the issue, then you’ll need to take a more pragmatic action. This usually begins by sending a formal demand letter for payment.
1. Tips For Collecting Unpaid Invoices
If you’re running a small business, chances are you’ve had to deal with the occasional late paying customer. It can be frustrating chasing down payments, but there are a few things you can do to make the process a little easier. Here are four tips for collecting invoices: The first step is to get organised. Make sure you have a system in place for tracking invoices and payments. This will help you stay on top of who owes what and when it is due. Secondly, set up reminders. This can be done manually, or through an invoicing and accounting software like xero.
If you do end up with a late payment, don’t be afraid to follow up on it. A polite email or phone call can often encourage a delinquent customer to pay up. Always be prepared to take action If all else fails. A Business Debt Collection specialist can help you navigate the options to collect unpaid invoices. Whilst this option could be a last resort for some, it is necessary to get paid. No one likes dealing with late payments, but it’s a reality of running a business in the current climate.
2. Tips For Avoiding Unpaid Invoices
When it comes to running a business, there are a lot of expenses that you have to keep track of. One of the most important expenses is your invoices. If you don’t keep track of your invoices, you could end up with a lot of unpaid invoices. This can put a strain on your business finances and cash flow. Three simple tips for avoiding unpaid invoices:
1. Keep track of your invoices. Make sure you know what is due and overdue.
2. Send reminders. If you see that an invoice is getting close to the due date, send a reminder to the customer.
3. Follow up. If you don’t receive payment after sending a reminder, follow up with the customer. This shows that you’re serious about getting paid and may prompt the customer to take action. Unpaid invoices can be a problem for any business. By following these tips, you can avoid having to deal with this issue.
Unpaid Invoices not been paid?
Whether you are a small business with unpaid invoices or self employed and not been paid, it is important to act. At Federal Management we have been helping UK Businesses since 2004 recover payment of invoices. These unpaid invoices can vary greatly from large amount to single small amounts. One thing they all have in common is that they are unpaid.
An unpaid invoice will not collect itself so take positive action and contact our Specialist team today for immediate help and advice. Overdue Invoices are the biggest killer of Businesses in the country, do not let your Business become a victim.
Watch our video for 5 tips and advice on collecting unpaid invoices.