How You Can Write An Unpaid Invoice Letter That Works

How You Can Write An Unpaid Invoice Letter That Works

Chasing for payment is something that sometimes feels uncomfortable for many business owners across the UK. This is especially true for younger and smaller businesses. Or, in other cases, where chasing for payment can take precious time away from another task.

Awkwardness aside, it is absolutely critical that you receive payment when an invoice is due. Without this, the success of your business is uncertain, as too many invoices that become overdue (and unpaid) can spell disaster.

Chasing for payment is a normal part of daily business life. With most companies constantly experiencing a high level of business activity, mistakes are bound to happen. Missed payments are common, and so it’s the job of credit controllers to ensure that everything runs smoothly.

Unfortunately, it is also common for clients to deliberately withhold a payment. Some debtors will go to the end of the Earth to avoid making a payment. If this is the case, you should write a strong unpaid invoice letter. Doing this before taking action via a debt collection agency can be a step in the right direction.

Whenever an invoice is overdue, it can represent a big problem for a business and its cash flow. By taking the right steps, you can enjoy the growth and success your company deserves.

10 Steps You Should Take When Writing an Unpaid Invoice Letter

1. Timing

Sending your unpaid invoice letter at the right time can be an important part of the process.

For instance, having a letter arrive on a busy Monday morning might not be the best time. Your debtor will be busy with other letters, and yours may get lost in the flow.

This is especially important for newer clients, or those that have got a history of overdue payments.

Always send your first letter the day after the invoice due date. After this, you should send further follow-ups 30, 60 and 90 days overdue from the original date.

Aim to actually post your letter the day before you want it to arrive. Tuesdays and Thursdays are good days, as your debtor probably won’t receive as much post as they would do over the weekend.

2. Use professional language

You should always maintain a professional one in your correspondence with clients, regardless of the matter you are discussing.

When sending an unpaid invoice letter, you should also speak clearly and state your point firmly.

Your letter should be right to the point and be as helpful as possible under the circumstances.

Even though it is frustrating to have a payment withheld, you should never let this be reflected in your communications.

3. Be polite

As well as being professional, you should also be polite. In many cases, there might be an innocent explanation for why the debt has not been paid. A friendly reminder can go a long way to smooth out any issues.

Going in too strongly if this is the case could alienate the client. This puts future opportunities at risk and could hurt your business in the long run.

Making sure that you are polite leaves little room for a debtor who is deliberately withholding payments.

4. Include the original payment details and invoice

Including all the information related to your debt can help your client to make a payment.

Making sure that you include all of the related documents can provide a client with the information they might have missed or lost.

You should include the original invoice if possible, or the invoice number and when it was issued if not. You can also include your payment terms, and any additional reminders you might have sent.

As well as this, you sho