In the longer-term, an unpaid invoice is a lesson in the importance of having a policy and monitoring the creditworthiness of your clients on a regular, on-going basis, even after the onboarding process has been completed.
When non-payment of a contract happens, correctly and swiftly communicating with clients about their past-due invoices is imperative. When phone calls and reminders are unheeded, it’s time to write a non-payment letter.
This letter has two objectives: to retrieve the non-payment and maintain good customer relations. With that in mind, your non-payment letter should be respectful, concise and specific.
If follow-up letters are necessary, they should gradually become firmer in tone, but each non-payment letter should be written on your company letterhead, include your signature and contain the following information:
- Paragraph 1: In one sentence, explain that you are writing about a past-due invoice.
- Paragraph 2: Summarise in bullet points the details of the past-due invoice, including invoice tracking number, the principal amount, any interest or fees and a description of what the original balance is for—including dates and locations.
- Paragraph 3: In one sentence, thank the recipient for swift payment and suggest a call to discuss terms.