Welcome to the world of freelancing and small business ownership! While the freedom to set your own rates and manage your income is fantastic, it often comes with the challenge of chasing unpaid invoices. Don’t worry – we’ve got you covered with our 5-Step Approach to getting paid without damaging client relationships.
Step 1: Remember, It’s Not Rude to Chase 🤔
When a payment is late, it’s easy to imagine the worst. But before you picture your client as the next big scammer, take a deep breath. It’s more likely they’ve simply overlooked your invoice. Stay calm and send a polite reminder.
Step 2: Send Your First Late Invoice Reminder 📧
If the agreed payment date has passed, it’s time for a friendly follow-up. Here’s a simple template:
“`
Subject line: Overdue payment – [Invoice #]
Hi [Client],
I’m following up on invoice [#], which was due on [Date]. Could you confirm when it will be paid?
I’ve attached the invoice for reference. Thanks!
“`
Step 3: Send a Second Reminder 📞
If two weeks pass without a response, it’s time to pick up the phone or send another email. Here’s a template for your follow-up email:
“`
Subject line: Re: Overdue payment – [Invoice #]
Hi [Client],
Following my previous email, I’m reaching out to remind you that invoice [#] is now [#] days overdue. Could you please update me on the payment status?
Let me know if you need any further information from me to process this. I’ve attached the invoice again for reference. Thanks!
Step 4: Consider Charging Interest ⚖️
If payment is still delayed, you might consider adding interest to your invoice. While this might not be the most popular move with your client, it’s within your rights. After 30 days, UK law allows you to include additional charges. Your next email could look like this:
“`
Further to my previous emails, I’m notifying you that I will charge X% interest per [Day/Week] on the overdue invoice [Invoice Reference].
I’d prefer to avoid this, so please let me know the status of the payment, or if there are any issues with the invoice itself that I can help to resolve.
Step 5: Taking Further Action 🚀
If you’re still not getting a response, you have a few options:
1. **Social media call-out**: A last resort, but it can be effective.
2. **Debt collection agency**: They can take over the follow-up process for you.
3. **Solicitor involvement**: Even a letter from a solicitor can be persuasive.
4. **Small claims court**: You can apply online for claims under £100,000.
Remember, sometimes just mentioning these options can prompt action!
At Dead Simple Accounting, we’re here to help you navigate these tricky situations. Stay tuned for more tips on managing your finances and keeping your business running smoothly! 💼✨
