Second Phone Call Contact
WHAT TO SAY
“Hello, this is [your name] calling from [your business].
I’m calling about our invoice and the payment you said you’d make on [date] but it hasn’t come through yet.
I am phoning to check if there is a problem? "
They will most likely give you an explanation why they haven't been able to pay and give you another date/time frame.
Check on that date and ring again.. this will make them aware that you are not going to forget about it.
Let them know interest will start accruing.
Further down this page are the details for calculating interest.
Once you have made two or three phone calls as above and the customer still hasn't paid, calculate and add the interest and send them a letter:-
Make a note on your calendar of when you need to follow up with the second letter. So this will be 7 days after posting the first letter plus another day or two for the travel time of the letter in the post.
If payment arrives in the meantime, great!
However, if not then on that date or the day after, check your bank to make sure it wasn't paid by internet banking.
If no payment has been received, send a second letter.
WORDING OF FIRST LETTER
"We refer to our Invoice No.[number] dated [date] and our various telephone conversations regarding your payment.
As your payment has not yet been received, interest of ##% per year amounting to $### has been added to your account.
The total now outstanding is $xxx.xx
We value your custom and would like this matter to be resolved as quickly as possible.
Please pay your account within 7 days of the date of this letter to avoid further action."
The wording of this letter is stricter to really push this customer into action.
There is no need to add more interest as interest is calculated on a monthly basis and this second letter is only 7 days after the last one.
WORDING OF SECOND LETTER
We refer to our letter dated [date] regarding Invoice No.[invoice no.] dated [date].
This is a reminder that your total amount owing to us is $xxx.xx
If we do not receive your payment within 7 days your account will be handed over to our debt collection agency.
Please note that this action can affect your general credit rating, and you will be liable for the debt collection fees*".