the early bird gets paid

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the early bird gets paid

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. 

Dear Customer,

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.

Regards,
Gwen Iveer.

Consider doing this – it works and you don’t have to send such a reminder to all customers. Be selective. We were.

By | 2017-07-17T08:55:28+00:00 November 18th, 2014|Uncategorized|0 Comments

About the Author:

Have you ever wondered why a client does business with you and then ignores your invoice like they had no intention of paying it in the first place or they treat you like their own personal line of credit, leaving YOU dangling, waiting months for their payment? Unfortunately this situation is all too common and can even be puzzling for the most experienced business owner. If you’ve ever had to handle outstanding accounts or you are just so over non-payers, then we can help. Real-world skills, solutions, tips & strategies to get more accounts paid on time, and, most importantly, how to maintain customer goodwill while keeping YOUR cash flow in the positive. You will find the blog posts helpful but to get real results, contact us by using any of the forms on this site, by email or by phone. I’ve been involved in the management of accounts for over 30 years, heard every excuse in the book, can spot a non-payer at 20 paces. Finance Companies in the 70s (systematic, tough), professional firms in the 80s (no systems, too gentle) and, since then, just about every other sort of business you can think of. I’ve written books on the topic, spoken all over the place about it and the blog in this website is my way of “giving back”. I hope you find it helpful.

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