SMALL BOT FIXfrom Small Bot Club

Small Bot Fix Guides Chase a late invoice

How to chase a late invoice

A late invoice is awkward, but it's usually an admin problem, not a bad client. This checklist gets the boring parts right first, then sends four calm reminders.

From the club secretary. This is practical advice from a small tool, not legal advice.

Before you send anything

  1. Check you sent it to the right person. At bigger clients, invoices often go to accounts payable, not the person you worked with. Ask who pays invoices and whether they need a purchase order number.
  2. Resend the invoice. Attach it again, or reply in the original thread, with the invoice number, amount and due date in the subject line.
  3. Give them a pay link. A Stripe, PayPal or Venmo link, or your bank details, right in the email. The fewer steps it takes to pay, the better.
  4. Check your terms. Look at what your contract or invoice says about the due date and any late fee. Only charge a late fee if your contract says so.

Then pick your dates

Small Bot Fix uses a simple schedule. Change it if it doesn't suit you; the point is to decide in advance so you're not agonizing each morning.

  1. Day 3: a friendly reminder. Assume it slipped through the cracks. See the day 3 template.
  2. Day 7: a firmer follow-up. Ask when you can expect payment. See the day 7 template.
  3. Day 14: a third reminder. Say it's been two weeks and ask them to reply if something is holding it up.
  4. Day 30: a final notice. Set a clear deadline and say what happens next. See the day 14 and day 30 templates.

Write all four for my invoice

Already late? Put in the due date and the tool marks which dates have passed and which reminder to send today.

A few rules the club keeps

  • Send reminders as yourself. The Federal Trade Commission notes that a business collecting its own debts under a name that suggests someone else is collecting can be treated as a debt collector under the Fair Debt Collection Practices Act, and that false threats of legal action can break the FTC Act (FTC business blog, 2015).
  • Only promise what you'll do. "I'll pause further work" is fine if you will. Don't threaten anything you don't mean.
  • Pick up the phone. If the final notice gets no reply, a short call often gets further than another email.
  • Keep an eye on what's owed. The U.S. Small Business Administration lists accounts receivable, the money customers owe you, among the money jobs someone in the business needs to manage (SBA: manage your finances). The SBA also points out that late payments and overdue invoices can cause a serious cash-flow problem (SBA blog: working capital).

If it still isn't paid

After the final notice, your options depend on the amount, your contract and your state. That's a question for a lawyer or your local small business advisers, not for a small bot.

Common questions about the tool itself are on the Small Bot Fix FAQ.