Overdue invoices need reminder letters: 3 templates for you to download
Overdue invoices are the biggest cause of lost sleep amongst small businesses. Even larger businesses have overdue invoices, the things is they have the teams and the man power to deal with them.
So let’s start by giving you the team and man power to prevent overdue invoices and late payments causing you sleepless nights. Both you and bigger business are entitled to the same payment terms, the same recourse for overdue invoices, you are entitled under the Late Payment of Commercial Debt (Interest) Act 1998 to charge penalties for late payment.
Let’s stop it before then though by issuing reminders. Overdue invoices are normally not paid due to illness, or getting lost in mountains of paperwork or just being misfiled so a gentle reminder should get your overdue invoices paid.
Stage 1 – A Gentle Letter
1st chasing letter
Letter Approach: Friendly non confrontational gentle reminder
When to send it: The day payment should have been received but isn’t
How to send it: Email or post, don’t forget to ask for confirmation of receipt though since an old address won’t get your invoice paid.
View as a Google Document
Stage 2 – A Poke to get Payment
Example 2nd chasing letter
Letter Approach: Formal reminder informing them of additional penalties
When to send it: 7days after the first letter if payment or a reason for non payment hasn’t been received.
How to send it: Post, recorded delivery so you can prove it has reached your customer.
Stage 3 – The final demand
Example Final Demand Letter
Letter Approach: No more nice supplier, this is the end of their chances
When to send it: 7 days after your Stage 2 letter if again you have had no response, now is the time to start adding in the penalties you mentioned in letter 2 and their last warning before you go further.
How to send it: Post, recorded delivery so you can prove it has reached your customer. This will definitely be needed if you progress this further.
If you need any further assistance or would like to discuss these templates then feel free to book a 15 minute call with me.
Do you have some wording you always use? What have you found works best for you?
