Collecting an unpaid invoice
Late invoices are a direct cash flow risk for a small business. This guide explains how to move from a polite reminder to the district court and enforcement if needed, and how collecting from a business customer differs from collecting from a consumer.
You will need
- The original invoice and order confirmation or contract
- The customer's contact details and business ID or personal details
- Email or message history
- The accounts receivable ledger or your invoicing software
Steps
Check the invoice and terms
Make sure the invoice has the agreed due date, late-payment interest and reference number, and that it went to the right address. Sometimes the invoice has simply got lost in the customer's system.
Get in touch in a friendly way
Send a written payment reminder
Calculate the late-payment interest
Agree on a payment plan if needed
Hand the matter to a collection agency
Apply for a payment order from the district court
Take the judgment to enforcement
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