your accounts receivable collection methods should have worked and the customer galvanized to pay.
If they settle the invoice in full, but not the
interest, you could simply reverse the interest.
Often, it is not worth the
headache trying to recover that small amount.
*Also, see Accounts Receivable Procedures.
Customers will only be liable for the debt collection fees if they
have signed your Terms and Conditions which state they will be liable
for these fees. This is why it is an important step to get customers to
open an account. If not, the debt collection fees will come out of your
own pocket. Debt collection fees start with the next step.
What Next if they don't pay?
If they have still not paid, hand them over to your chosen collection agency so you can focus on the other important aspects of your business.
The debt collection agency will have a really good system in place for handling difficult customers and they usually have access to put a black mark against someone's credit rating.