Customers are paying late: how to prevent invoices from piling up

Customers are paying late, even though you’ve already paid for materials, wages and other costs. The invoice has been sent, but there’s still no response after the due date. You’d quite like to remind the customer, but it can quickly feel like an awkward conversation.

That’s precisely why it’s important not to wait. A friendly invoice reminder isn’t an accusation, but a normal part of doing business. The sooner you send it, the greater the chance that a forgotten invoice will be paid quickly.

Why do outstanding invoices so often go unpaid?

A customer who doesn’t pay on time is by no means always doing so deliberately. For private individuals, an invoice has often simply slipped their mind. For business customers, the invoice may still be awaiting internal approval or a fixed payment cycle.

If you don’t get in touch, your invoice is more likely to slip to the bottom of the pile. That’s understandable, but it’s a nuisance for your business. You’ve already done the work and don’t want to wait weeks for money that’s simply owed to you.

Delaying reminders has another drawback: the longer you wait, the more awkward it becomes. After a few days, you can still send a short message without any trouble. After two months, it immediately feels as though you have to have a difficult conversation.

A set procedure prevents this procrastination. Make sure you know what you’ll do if the invoice is overdue before you send it:

• always include a clear due date on the invoice;
• check that the correct customer email address has been used;
• send a friendly reminder shortly after the due date;
• create a task for yourself or your admin team if a second follow-up is needed;
• keep track of which invoices are still outstanding.

That sounds simple. Yet it is precisely this sort of routine work that tends to fall by the wayside as soon as you’re busy with clients and projects.

How do you send an invoice reminder without any hassle?

Sending an invoice reminder doesn’t have to sound harsh or legal. Start on a neutral note: the due date has passed and you’re asking the client to check whether the payment might have been overlooked. Include the invoice number, the outstanding amount and a convenient payment option.

You don’t need to ring or make threats straight away. The first reminder, in particular, is mainly a practical heads-up. Many customers do end up paying as soon as they see the message.

A real-life example: a fitter completes a maintenance job on a Friday. The technician has recorded the hours and materials on the work order and the customer has signed it. Back at the office, the work order is checked and converted into an invoice. The due date is clearly stated, but two weeks later, no payment has been received.

Instead of the owner having to sift through a list on Monday and write dozens of messages, a friendly reminder is sent out. The customer is given another opportunity to pay immediately. If payment has been made, the follow-up stops. If there is no payment, a task can be queued for the accounts department, for example.

It all starts with an invoice sent out shortly after the job is completed. With a digital work order that you can convert into an invoice, you don’t need to retype hours and materials. This means the invoice doesn’t sit around the office for days on end.

What does an automatic payment reminder do?

An automatic payment reminder does not take over the entire payment process for you. Above all, it ensures that the first follow-up is not dependent on your memory or on a quiet Friday afternoon.

In Klantly, this works as follows: you send an invoice with a due date. If payment hasn’t been received by that date, the system can automatically send a reminder in the customer’s language. You decide what happens next, such as a second message, an internal notification or a task for the accounts department.

As soon as the customer pays, the sequence of reminders stops automatically. So you don’t have to manually keep track of who you’ve already contacted. The overview of invoices and payment statuses also allows you to keep track of what’s still outstanding.

Automation doesn’t mean you become impersonal. It means you carry out consistent, straightforward follow-ups on time. For a customer with a complicated situation or a large outstanding balance, you can always ring them yourself afterwards.

Why do a due date and a payment button make a difference?

An unclear invoice leaves room for delay. You should therefore always state clearly when you expect payment. The invoice due date is not just administrative information; it gives the customer a specific point in time when action is required.

Make paying as easy as possible afterwards. If someone first has to log in to their bank, type in an account number and enter an invoice number as the reference, they’re more likely to think: ‘I’ll do that later’. And ‘later’ easily becomes ‘next week’.

With a payment button on the invoice, the customer can pay straight away via Mollie, for example using iDEAL or a card. The payment status is then reflected in Klantly. This saves you having to tick things off manually and prevents you from sending a reminder for an invoice that has already been paid.

This is particularly useful for deposits and instalment invoices. In such cases, you’ll want to see what remains outstanding for each instalment, and you’ll want reminders to be based on the outstanding amount, not just the original invoice total.

Where is the line between sending a reminder and debt collection?

A payment reminder is not a debt collection process. You politely inform the customer that the due date has passed and give them the opportunity to pay. This is different from a formal demand for payment, a payment arrangement or engaging a debt collection agency.

If an invoice remains unpaid despite reminders, it is up to you to decide what the next step should be. Perhaps you’ll call the customer first. Perhaps there is a query about the invoice. Or perhaps further action is needed beyond your normal invoicing process.

The benefit of a fixed reminder routine isn’t about taking a tougher stance. Rather, it prevents ordinary, forgotten invoices from remaining unpaid for an unnecessarily long time. This frees up your time for the exceptions that do require personal attention.

Would you like to find out how you can manage invoices, payment statuses and reminders more efficiently? Get started for free and see, with no obligation, what Klantly can do for your business.