Unpaid Invoices? Send a Letter Before Action

If you’re a business owner, it’s probably inevitable that at some point in your career you will experience outstanding Unpaid Invoices? Send a Letter Before Action. In a business, uncollected revenue can have severe consequences. It can affect cash flow and make it difficult to pay staff, suppliers or invest in new opportunities or areas of growth. It can also make it difficult to secure credit or loans and even negatively impact a company’s credit score.

Free Template: Letter Before Action for Debt Recovery

The first step in getting paid is sending a polite and professional reminder to your client. This should clearly state the amount that is overdue, the date when the invoice became due, and if applicable, any interest rates or penalties that are applied to late payments. It should also note that a failure to respond will result in legal proceedings being taken against them.

If the invoice remains unpaid, it may be time to take things a step further and contact their main point of contact on a phone call to discuss the matter. It’s best to make this call as soon as possible, before the overdue invoice becomes too much of a problem for them to manage. It’s important to be prepared for the call and have all relevant information at hand, such as the invoice reference number, amount owed, payment deadline, and any communications with them so far.

If the client agrees that they owe you money, it’s worth exploring repayment options to see what can be agreed. For example, you could suggest that they make a lump sum payment or set up an ongoing regular schedule of smaller repayments to help them manage their finances. It’s important to negotiate a repayment plan that is realistic and affordable for them so that you don’t risk damaging your relationship with them over money.