Emails provide an efficient and effective means of communication when it comes to credit control efforts, both to encourage timely payment and to strengthen relationships with customers.
Here we look at some of the emails that are important to send to customers as part of your credit control strategy.
Confirm receipt of invoice
Once you have sent an invoice, particularly where it is sent via post or a third-party invoicing system, it is advisable to email your customer soon after the invoice is sent to confirm they have received it. Include in it the following:
- Confirm when the payment date is, together with details of how to pay
- Ascertain that there are no errors, queries or disputes about the invoice
- Explain that your customer has a set period to raise any disputes
Covering these points demonstrates that you have a robust credit control process in place and could deter customers from delaying payment.
Advance reminder
It’s a good idea to send a polite reminder email a few days before your invoice is due. This should ensure that any genuine processing mistakes which would have delayed payment can be addressed, whilst also giving your customer the opportunity to advise you whether payment is likely to be delayed for any reason.
Payment is now due
Send a reminder to your customer that there is an outstanding invoice that is now due. This should include relevant details such as the invoice number, amount owed and due date. You may also wish to include your T&Cs and reference your right to charge statutory late payment compensation and interest.
Do this as soon as the due date passes, or as soon after as possible, and be sure to provide clear instructions on how and where to make the payment.
Payment is now overdue
This email should convey that urgent action is required to settle the overdue payment. This is required if the initial reminder goes unanswered and no payment arrives within a certain period. Express your concern regarding the unpaid balance and explain the potential consequences of continued non-payment, such as their account being put on hold, as well as your right to charge statutory late payment compensation and interest. Reiterate the importance of settling the amount promptly and provide a clear deadline.
Final notice – urgent action required
If previous attempts have been unsuccessful, it is time to send a stronger email that makes clear the urgency of the situation and indicating that you will pass their details across to a debt collection partner if payment is not forthcoming within a certain period.
Should payment still not arrive, it is advisable that you instruct a reputable debt collection agency who can act to recover monies on your behalf, who can bring further authority to negotiations and expertise in delivering successful outcomes.
Controlaccount has been recovering overdue invoice ethically and effectively for over forty years. We operate on a no-collection, no-fee basis, and once instructed will notify your customer of their involvement and commence debt recovery activity, keeping you updated at all times.
Thank you for your payment
Whether your customer pays on time or late, it is pertinent and professional to send a thank you email. This can of course be tailored to particular customers depending on the timeliness of their payment. Despite issues with overdue payments, there will be some legitimate reasons for late payment and maintaining a good relationship with customers is important. Sending a thank you email will assist in fostering goodwill and loyalty, and it also provides an opportunity to pitch for further work, upsell or cross-sell additional products and services, or request a positive review.
If you need advice or assistance with your credit control efforts, speak to our team today.
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