How to Get Unpaid Invoices Paid
How to Get Unpaid Invoices Paid
No matter how big a business is, it relies on its customers paying their invoices to grow.
If customers do not pay, it can cause a lot of problems, and can even put a company at risk of folding.
Do you have a small business or are self-employed?
If so, you may already have come across issues with an unpaid invoice.
Recovering the money is the main goal in any situation like this.
Unlike larger organisations that will have in-house credit control teams…
…small businesses or self-employed individuals may have a harder time collecting a debt.
Every moment spent chasing an unpaid invoice is one that you could have used to grow the business.
It can be tempting for many smaller companies to write the debt off.
This should never be something that bad payers force business owners into doing.
We have written this article to help those who are facing an unpaid invoice resolve the matter in the best way possible.
Recovering Unpaid Invoices UK
Most small businesses and freelancers in the UK have terms and conditions that relate to payments.
It is common to allow 30 days for the customer to make the payment following the completion or receipt of goods and services.
If this time has passed and you are still without payment, it is safe to declare the invoice as unpaid and overdue.
At this point, you must recover the money yourself or seek help in doing so.
Many small businesses or self-employed people do not act as they need to in circumstances like this.
As such, debt resulting from unpaid invoices often slip through the cracks.
There are a few reasons why this might be the case, but the most common factor that unites them is time and money.
Quite often, smaller organisations do not have the capacity or resources to chase down a debtor that owes them money.
Larger companies have the benefit of credit control personnel.
Small businesses may not have this luxury.
It costs a business owner valuable time to recover a debt.
This in turn will cost them more money besides what they are already owed.
It could also be that a small business owner does not want to risk future sales opportunities with a larger organisation that owes them money.
It is often considered rude to ask for money for goods or services that you have provided.
If this is the case, it is important to remember that no business has ever lost a customer because a supplier asked them to pay.
As mentioned, a business relies on a steady income of payments to be able to grow and thrive.
It is important to recover any unpaid invoice.
How can business owners do this without needing to spend hours they do not have to collect the debt themselves?
How to Recover Unpaid Invoices
The best way in which you can recover an unpaid invoice that someone owes you is to instruct a debt collection agency.
Before doing so, there are some steps that you can do yourself that do not incur a great cost either in time or money.
1 – Preventative Measures
You can reduce the risk of an unpaid invoice from happening in the first place by applying some preventative measures in your sales process.
Implementing payment terms is something that can help a great deal.
Explaining to your customer what their payment obligations are before asking them to agree is a good step.
You can confirm this agreement can by taking a signature before any goods or services you provide.
Adding overdue invoice charges is also a good preventative measure, as it provides a good incentive for customers to pay on time.
If they do not, you can charge them a fee on top of what they already owe.
Like payment terms, this charge you must make sure your customer is aware of and agrees to this before supplying goods or services.
2 – Maintain a Composed and Professional Manner
The goods and services that a small business or self-employed person provides can be very personal to them.
If a customer does not pay for them, it can be hurtful to the person who supplied them.
If this has happened to you and you are feeling angry, annoyed and disappointed, you are not alone.
We speak to thousands of people every week that are in a similar situation.
It can be very easy for people to let these emotions get the better of them…
…and many conversations about an unpaid invoice can turn into an argument.
In any communication with the debtor, you must make sure to maintain a professional and polite tone.
Many people that owe you money will seek to provoke you into an argument.
Do not fall for this, and do not give the debtor any grounds to refuse payment – being calm and professional is the best way to proceed.
3 – Send Reminders
If you have someone who owes you money from an unpaid invoice, sending them reminders to pay can be a good first step.
You can send polite reminders via emails and letters (with recorded delivery) is a good first step.
If the customer ignores or misses these, reaching out via the telephone is a good way for you to follow up with them.
These can sometimes remind the client to pay, as they may have an innocent reason on why they have not paid.
A customers reaction to these reminders can reveal a lot about their intention to pay…
…those who are evasive or argumentative may not have any intention of paying at all.
How to Get Unpaid Invoices Paid
If you have followed the steps above and are still facing issues with an unpaid invoice…
…we recommend seeking a professional solution.
There are a few options available for doing so.
The best choice business owners can make is to instruct a professional debt collection agency.
A debt collection agency will be able to recover money owed from an unpaid invoice promptly and professionally.
Frontline Collections is the UK’s leading personal and private debt collection agency.
Our service provides key benefits, including:
- We perform all letters, Emails, SMS and Telephone calls
- Our debt collection officers visit the debtor
- We provide legal mediation and investigation
- We deliver expert negotiation and repayment schedules
- An average 90% recovery rate on all undisputed debts
- Accredited by the Credit Services Association (CSA)
For a free pre-action assessment of your unpaid invoice debt, speak to one of our friendly collections agents today.
How to Get Unpaid Invoices Paid – Frequently Asked Questions
How Much Does It Cost To Recover Unpaid Invoices?
Frontline Collections operate the lowest commission rates, starting from as little as 8%. The best way to get a price is to speak with our friendly debt collection agents now. We perform a free pre-action assessment of your debt, which will give you a clear indication of what is involved in collecting the debt.
Do You Only Help Businesses?
We can help both private individuals and businesses with any cases relating to debt recovery for unpaid invoices.
How Long Does It Take To Recover Money From Unpaid Invoices?
Each case must be looked at and dealt with individually, so there is not really “one” answer. Our service promptly and professionally recovers all debts. Speak to one of our friendly debt collection experts now for a free pre-action assessment of your debt.
Where Can You Recover Unpaid Invoices From?
We can recover debt from virtually anywhere in the world. We have collections offices placed at strategic locations around the UK, as well as a global network of trusted international agents.
I Am Self Employed, Can You Help Me?
Yes. We help businesses of every size recover unpaid invoices every day.