Knowing How to Gently Demand Payment
12 September 2014
Read by 3521 persons
You are dealing with a (several) bad payer(s)? How to react without going directly to legal proceedings?
Here are a few "gentle" ideas...
Unpaid invoices, bad payers, non-payers...In other words, those who cause bankruptcies: they are legion, they are dangerous.
Indeed, few companies can afford to have a designated service that monitors the progress of invoices, and many give up on being paid, for fear of having to enter into long and costly legal systems.
What to do, first?
• Don't wait. Don't avoid reminding the forgetful customer. Don't wait until the various deadlines (courtesy and/or legal) have expired.
• Check as quickly as possible that the invoice has been received by its recipient, that it is being processed and that, on both sides, nothing opposes the payment.
• Don't hesitate to send a reminder letter (paper or electronic).
• Find out about the various procedures used by the customer in question: who or which service/establishment is the manager who validates the expected payments?
• Dare to call and ask the question directly.
• Dare, if absolutely necessary, to set a new deadline, but by requiring a written record of the agreement (in an email, sent with acknowledgment of receipt, to your debtor).
• Don't focus on large amounts due while forgetting small amounts: they all contribute to the smooth running and existence of the company.
• Dare to share the reminder work with one or more colleagues, to strengthen yourselves.
If these actions prove insufficient, don't let up the pressure and explain directly -politely but firmly- the consequences for your cash flow and your company, of such a delay (with figures to support your claims).
If you happen to be dealing with dishonest individuals, do not hesitate to opt for a formal notice (registered letter with acknowledgment of receipt). This letter must demand payment within forty-eight hours. Faced with the use of this method of claim, 10% of companies give in.
If this were still not enough, start counting late payment penalties.
However, if the previous actions had proved fruitless, you must then apply penalties and sanctions, specifying on the invoice issued that any day of delay is liable to sanctions. (For example, the European Central Bank rate reaches 11%).
As a last resort, it is useful to call on a debt collection agency, even if it is costly. But this will indicate to your client how tenacious you are and remains an impressive means of pressure.
If this last action did not bring satisfaction, a bailiff will be appointed.
The Rekrute.com Team
Here are a few "gentle" ideas...
Unpaid invoices, bad payers, non-payers...In other words, those who cause bankruptcies: they are legion, they are dangerous.
Indeed, few companies can afford to have a designated service that monitors the progress of invoices, and many give up on being paid, for fear of having to enter into long and costly legal systems.
What to do, first?
• Don't wait. Don't avoid reminding the forgetful customer. Don't wait until the various deadlines (courtesy and/or legal) have expired.
• Check as quickly as possible that the invoice has been received by its recipient, that it is being processed and that, on both sides, nothing opposes the payment.
• Don't hesitate to send a reminder letter (paper or electronic).
• Find out about the various procedures used by the customer in question: who or which service/establishment is the manager who validates the expected payments?
• Dare to call and ask the question directly.
• Dare, if absolutely necessary, to set a new deadline, but by requiring a written record of the agreement (in an email, sent with acknowledgment of receipt, to your debtor).
• Don't focus on large amounts due while forgetting small amounts: they all contribute to the smooth running and existence of the company.
• Dare to share the reminder work with one or more colleagues, to strengthen yourselves.
If these actions prove insufficient, don't let up the pressure and explain directly -politely but firmly- the consequences for your cash flow and your company, of such a delay (with figures to support your claims).
If you happen to be dealing with dishonest individuals, do not hesitate to opt for a formal notice (registered letter with acknowledgment of receipt). This letter must demand payment within forty-eight hours. Faced with the use of this method of claim, 10% of companies give in.
If this were still not enough, start counting late payment penalties.
However, if the previous actions had proved fruitless, you must then apply penalties and sanctions, specifying on the invoice issued that any day of delay is liable to sanctions. (For example, the European Central Bank rate reaches 11%).
As a last resort, it is useful to call on a debt collection agency, even if it is costly. But this will indicate to your client how tenacious you are and remains an impressive means of pressure.
If this last action did not bring satisfaction, a bailiff will be appointed.
The Rekrute.com Team
