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How should you handle unpaid invoices?

On Behalf of | Mar 30, 2023 | Collection

When your company is dealing with past-due invoices from other companies, it is important to take a proactive and structured approach to ensure the best possible outcome.

A few outstanding debts might not seem that significant right now, but your situation could worsen rapidly if someone else also fails to pay on time. So it’s better to be proactive about getting your money on time.

Here are some steps you can take to handle past-due invoices:

Verify the accuracy of the invoice

Ensure the invoice is accurate and includes all the necessary information, such as invoice number, date, amount and terms. If there are any discrepancies, address them immediately with the debtor company.

Establish a clear communication line

Reach out to the debtor company, ideally to a specific contact, to discuss the overdue invoice. Maintain a professional and courteous tone throughout the conversation.

Send reminders and follow-ups

If the invoice remains unpaid, send regular reminders and follow-ups via email, phone or mail. Keep records of all communications, including dates and outcomes.

Offer flexible payment options

Consider offering the debtor company flexible payment options, such as installment plans or a discounted settlement amount if they pay within a specific timeframe. This can encourage them to pay the outstanding balance more quickly.

Consider obtaining third-party help

If your efforts to collect the outstanding balance are unsuccessful, you may consider hiring a collection agency. These agencies specialize in collecting past-due accounts and can often recover a portion of the debt on your behalf.

If all else fails, consider taking legal action to recover the debt. This is sometimes the only way to collect the money due to your company.