4 Ways to Politely Remind a Client to Pay an Invoice

This article is aimed at small business owners and project managers. It explores your options in the event of invoice payment delays and offers guidance on ensuring that payments are cleared without damaging your relationship with a client. To set the context, we would like to emphasise that it is acceptable and encouraged to request the money owed to you. 

Whether you are a small business or a company with hundreds of clients, you rely on the revenue generated from receiving payments for your services. There is nothing worse than having these payments delayed, especially when you have been prompt in sending the invoice. We are certain you have encountered this issue more than once, and we empathise with the annoyance, anxiety, and frustration it must have caused.

Late invoice payments can become especially problematic when your ability to pay workers relies on the cash flow generated through the project. There are other significant issues that can jeopardise the overall success of your company, stemming from delays on the client side. We have previously discussed the steps to take in advance to ensure your invoices are settled on time. Due to popular demand, we are now sharing tips on how to handle situations when the payment is already late. 

When to Start Chasing a Client for a Payment?

It can be a slippery slope when determining the best time to nudge your client for payment. Fretting too early can indicate a lack of trust, while asking too late may adversely affect your business. The first step in identifying the right moment is to check the payment terms specified in the contract; it should clearly state the date of invoice creation and its due date. 

In an ideal world, invoices would be cleared upon receipt; however, most companies typically provide a grace period of either 15 or 30 days. Depending on the applicable period, the best time to follow up on an invoice is at the end of the grace period.

1. Send a Reminder Email

A reminder email is the first step to take when your client is falling behind on payment. Although some people feel awkward about having to chase the other party for money, it can easily resolve the situation. Simply put, your clients are human and can occasionally forget things or lose track of time. If that’s the case, not only is a reminder email nothing to be ashamed of, but also, if worded correctly, it can be a sign that you’re not holding it against them. 

If it still doesn’t sit well with you, you can always automate the reminder emails to handle the task for you. While they won’t be as personalised, they will convey the point effectively. You can set the timing for their dispatch yourself - upon the expiration of the grace period, right after the delivery deadline, etc. As a preventative measure, we also recommend sending an automated email reminder a week before the deadline. 

2. Invoice Efficiently 

To ensure timely payments, you must also provide timely invoices, which can become a bit tricky during peak periods. Additionally, just as clients sometimes forget to pay, companies are also guilty of neglecting to send invoices in the first place. To address these issues, we highly recommend using invoice automation tools. Not only will they generate accurate invoices within seconds, but they will also distribute them to the relevant parties and even allow for automated reminders as the due date approaches. 

 It is also worth noting that the very appearance of an invoice can influence its priority for the client. If you keep it detailed and consistent with your overall branding, it reflects professionalism. Believe it or not, professional-looking invoices are far more likely to be cleared first!

3. Attach a Copy of an Invoice

It may seem odd that you would want to resend the invoice as part of your payment-chase email, but bear with us. Referring back to the situation where the invoice remains unpaid due to forgetfulness, the client might also need a reminder of their outstanding balance. Moreover, if they are managing other outsourced workforces, it might take some time for them to determine which invoice belongs to you. Including a copy with the email will save them the trouble. 

However, keep in mind that the invoice is not a legally binding document, unlike the contract. Without a signed legal agreement specifying the due date and grace period for clearing the invoice, it lacks significant authority. 

4. Consider Auto-Debit or Upfront Payments Moving Forward

Finally, if this is not the first instance of the client being late with payments, engage in a dialogue with them about the precautions you will be implementing moving forward. Keep it polite and non-accusatory, expressing your understanding that mistakes happen. Then, suggest that the client might consider paying in advance if they find it challenging to pay on time. In other words, aim to introduce auto-debit or upfront payments as a convenience to them rather than to yourself.

If you’re addressing a client’s genuine forgetfulness, this solution will benefit both parties. However, don’t rush to offer it over one or two late invoices; it should be a consideration when there’s a clear pattern. Also, remember that whether this suggestion is accepted will greatly depend on the trust your client has in you and your deliverables. Therefore, it is best to propose this approach to individuals you have worked with for some time.

Summary 

Some argue that there is little to do once a client is late in paying for your services: it’s either to wait patiently or to pursue legal action. Consequently, much of the advice on this topic focuses on preventing the situation from arising in the first place. While we agree that it’s best to cover your bases by ensuring timely payments, we also believe that there are several strategies you can employ to encourage a client to settle invoices on time without harming your relationship with them.

Late invoices can and will occur even if you implement all the preventative measures. Therefore, it’s best to have a plan of action for when this happens, from automated reminders to late fees once the client is past the grace period. The key is to remain professional and respectful rather than allowing emotions to take control, even if the late payments are causing you issues. Lastly, it’s vital to remember there is no shame in following up with your client for the money: you and your team have earned it!

What should you do when your invoices are not settled on time? Let us know if you would like some guidance.