Example Late Payment
Reminder Letter 1

What do you do when a customer hasn't paid their bill?

The normal procedure is to wait a reasonable period of time and then send them a letter.

Our advice?

If it's a large company, before writing a letter, put in a telephone call to the company's Accounts Payable department and ask them when you can expect payment of your bill.

Have the invoice or bill to hand and be ready to fax or email over a copy, direct to the person you are speaking with.

Often, a line manager won't have forwarded your invoice to the accounts payable clerk and therefore, your payment can get delayed.

Never deal with your client contact, because usually, they have no control over when invoices get paid and of course, you don't want to ruin a good relationship!

Assuming that you have already done all you can by telephone, it's time to get serious.

Address your letter to the Accounts Payable department or person and send the first "friendly letter" as follows: 

This is a simple and effective reminder and also has the advantage of placing a copy of your invoice directly on the desk of the person responsible for paying you.

There is nothing wrong with expecting to be paid for goods or services that you have supplied and all businesses understand this fact.

Remember that most larger businesses have account departments who are instructed not to pay bills unless they are chased. They expect to get reminders so don't think you'll upset anyone by taking a harder stance.

If reminder 1 doesn't work within a reasonable period of time (say 1 week), then move on to late payment reminder letter number 2 - it's a little less friendly and demonstrates that you won't be fobbed off easily.

Accounts people in large companies pay those people who shout loudest - it's a game, so you might as well start playing to win!