As a small business owner, you try to streamline your business finances from the start. It is necessary to generate and send effective online invoices to the customers and also create a payment reminder if your invoices are not paid on time. Once you create an online invoice, you send it out immediately when the job is over.
Despite you being organized, however, it’s crucial to know how to handle the inevitable situation. That is, a few of your customers will fail to make their invoice payments on time. It would be best if you handled such cases with ease and at a professional level.
How send a payment reminder at the ideal time is not a very complex process. While addressing the late payment reminders to the client, you do not want to confront or sound harsh to customers. As some times, due to various reasons, a payment can get delayed.
You need to create a balance while sending the payment reminders by being professional, without letting go of your hard-earned money. Sometimes delayed payments can create a threatening situation for your business cash flow.
You can overcome the above-mentioned challenges by using GST invoicing software. GrofleX.in is a GST billing software that rids you of all the accounting hurdles. The online quote maker comes with automated features that enable you to send payment reminders on time.
What is the payment reminder?
An invoicing software offers a recurring payment reminder option. Through a payment reminder, you inform your client about the delayed payment that has not been made on time. You end up requesting the client to clear the amount.
It is not easy to chase and remind delinquent customers again and again, who always create an issue when making payments. But instead, you build a compelling email template reminder that ensures that your customer pays your invoice as soon as possible.
Implement quick tips for payment reminders
It’s crucial to formulate proper, timely procedures to boost your possibility of getting paid that is due on the due date. It will help you recover the cost of outstanding claims from clients to pay.
As a business owner, you are worried about the ideal time to send payment reminders to customers. Time is of the essence when it comes to business cash flow. The more you delay the reminder process on due invoices, the more likely your cash flow will decrease.
Send a reminder when payment is due
Your customer or client must remain aware of unpaid invoices. It would be best if you informed them about the outstanding amount, which needs quick attention. If required, you can send a reminder even before the due date for an on-time payment release.
Remember to include all the required information necessary for payment on time before forwarding it to the client.
Check with the client to confirm that they have received the invoice. Do acknowledge that the invoice is not yet overdue.
It is good practice to ask whether any issues would delay payment. It’s helpful to know the expected date of payment if an invoice is going to be late.
Refer to the invoice for the quick response
You need to specify the invoice number, the invoice amount, and the due date while sending the reminder to the client. Mention the products or services for which the invoice has been sent. It will help the client to access the invoice and pay faster.
Mention payment terms
GrofleX.io provides a range of payment terms that organizations or businesses can choose while creating their invoices. Choosing invoice payment terms influences the payment process. Mentioning your payment terms helps get paid faster. As you can observe in the image below GrofleX.io allows you to choose the duration within which you want the customers to clear the payments.
When the payment is 14 days overdue, you are legally entitled to add interest and compensation to the payment amount. If you decide to exercise these rights for your business, then state the payment terms for the reference of the client. Send a clear message that you need quick action for the particular invoice to be paid.
Explain the consequences of late payments
In extreme cases, you need to mention the charges of late payment to the client and even what the costs are. If the client denies or fails to pay the extra costs, you can take legal action. This way, your customer knows what to expect and will be more inclined to pay your bill quickly. It helps to escalate the severity of the late payment.
Transparent communication
An outstanding invoice can cause a lot of frustration. It would be best if you keep your communication, polite and businesslike while inquiring about late payments. It’s suitable to send the first communication to chase the debt if invoices are overdue by 14 days. You can send a reminder in a language that the customer can understand easily.
Automate your payment reminders
If you want to run a flourishing business, then it’s crucial to manage your credit control. With the help of an automated system, you can manage customer data centrally. It helps you to give a powerful insight regarding payments of good and bad customers.
Sometimes the client forgets to pay for the invoices, and you need to remind them of the outstanding balances.
Automatic payment reminders save a lot of time and money.
GrofleX offers online software to track all your financial cash flow. A transparent view of clients and cash flow allows you to make quick decisions for the future. It enables you to tackle issues, take action, and the company’s cash in a favorable position.
With easy clicks, you can send an unlimited number of invoice payment reminders before or after the invoice due date. The software offers a variety of payment options as per clients’ convenience, for example, PayPal, credit card, etc.
How to set automated payment reminders?
Imagine if you have to deal with payment reminders regularly. The amount of all those emails you have to go through while checking on your customers daily. About money, the clients owe you or approaching the due date.
It is a very time-consuming task that needs constant attention.
You can deal with this tedious task with GrofleX online invoicing tool. You can easily create customized invoices and also has the option to set automatic payment reminders.
The recurring payment setting allows you to create individual payment reminder invoices. The recurring settings automatically send the invoice emails to the client on a set due date.
If required you can change the settings for discounts etc. The easy-to-handle feature minimizes the workload and helps to receive your payment quickly.
The automated cloud-based software is easy to access globally. We help you schedule a smart sequence of reminders, which are automatically sent at the right time. It will save time and, more importantly, significantly reduce the risk of late payments.
Implement a successful reminder schedule
- Send a payment reminder email 7 days before the due date.
- The day invoice is due to follow up again.
- Add additional payment reminders for each past day in a collective chunk (7 days, 30 days, 60 days, 90 days).
- A final email/letter is on-demand 120 days after the due date.
- Get ready to take legal action or hand it over to the collection agency.
Conclusion
There can be many reasons for the delay in payments, but maintaining a calm attitude is of utmost importance.
You require to take a firmer approach toward reclaiming your compensation. Timing and language are the two critical components of a valid payment reminder. Always give your customer a final chance before sending a legal notice.
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