Ever thought about sending a Reminder Email, Text message or Letter BEFORE an invoice is due for payment? I get an email from American Express every month about one week before my account payment is due. Love it. I’m never late paying them!
Reminded me of what we did a few years ago at one of our clients. It was one of the methods we used to double their average collections on a month to month basis.
Their trading terms were “Payment is due 30 days from statement”. In other words, any October statements would become due and payable on 30 November. (A specific “pay by” date was also put on to the statements as wording such as “Strictly 30 days” is pretty meaningless.)
The purpose of the reminder (sent on 21st of each month) was to advise all customers how much was due and payable by the end of the month. To send any “lost” invoices to customers before they became overdue. This is the wording used. Short and to the point.
ABC PTY LTD (ABC123)
Amount Due – $ 447.00
We wish to remind you that at the end of this month the balance of $ 447.00 on your account is due and payable. As previously advised, any accounts that are not paid on or before the due date will be put on to hold until full payment of the due amounts is received.
Please contact us if
• your records disagree with ours, or if
• you need copies of any invoices that make up the above balance.
If not, we look forward to payment of your account in the near future.
Consider doing this – it works and you don’t have to send such a reminder to all customers. Be selective. We were.