Is the invoice expired? Make it easy on yourself and ensure the communication flow to your customers.
It is an important fact that, in your credit management strategy, the credit control is a part of the customer journey. this part should also be transparently explained to the customers in advance by means of the customer onboarding, the payment conditions and the general terms and conditions.
In the event of late payment, we always start by sending a reminder, which is logical of course. What sometimes gets forgotten is the fact that when sending reminders, a copy of the invoice must always be present. We all have forgotten to pay an invoice from time to time. Maybe because we even lost the invoice between our pile of paperwork. Therefore, a wait-and-see attitude is actually a sin.
Also, make the reminder sent personal, original and light-hearted. This could be a nice e-mail like: "Oh dear, is our invoice somewhere between your paperwork?". The chance that such communications are read (and processed) is much greater than the standard reminder. As already mentioned, you always send a digital copy of the invoice with each reminder. That way, you will not have any problems afterwards with the fact that the customer cannot find the invoice.
Is it a recognised bad debtor?
Then don't wait too long to send payment reminders. We even recommend a proactive approach, even before the due date of the invoice has expired.
An efficient credit management ledger solution, (such as the 3D Ledger from Creditsafe) ensures that you can react much faster in case of imminent bad debts and write-offs due to impending bankruptcies.
As already mentioned, the customer journey is an important element. In order to let this workflow run efficiently, automation of various credit management processes is definitely recommended. There are various credit management tools that can support you in this, for example, by sending automated reminders based on different time periods and credit risk data.
Creditsafe can also support you in this by integrating its company credit risk data directly into your CRM or ERP software, so that you always have the latest risk indications and the right company information data.