Enforcing an Invoice and Chasing Your Clients for Payment

In most businesses, the biggest headache is getting your payments processed on time. Once the work is done, it becomes the job of the company to keep asking for payments. Often clients are forthcoming and do the payments as per the terms and conditions however in most situations they may falter causing you anxiety. Here we mention the tips on how you can chase your clients for payment. 

Set your payment terms in advance 

Actually, a client would never talk to you about the money on your own. It is you who has to set their expectations straight when you are signing the deal. By informing them of the payment terms and your strictness with regards to the same you can make it crystal clear that you want your payments done on time.

Late interest charges 

It is always better to convey to clients that if they do not process payments on time there would be a late interest charge levied. This has dissuaded many people from faltering on the payments as no one wants to be penalized. Apart from that, you could also inform them about enforcing an invoice terms and conditions so that they are fully aware of what they are getting into.

Send them reminders 

Your first reminder need not be rude. Just send a simple reminder email asking them to process the payment as the invoice has been due for quite some time. However, remember that this email should be sent only if they have missed the last date by a few days. Do not send a reminder email when the date is not yet passed as that might just spoil the relations you have with them.

Statement of outstanding cost

Despite this, if you still have not received a response then maybe the problem is much deeper than you think. Plan on sending another email or rude specifying to them the details of outstanding cost and how they need to pay immediately to continue the work. If need be, keep their work on hold, telling them that the rest of the work would be accomplished only after the payments are processed.

Give a call 

When things go out of control then a polite call from your side may become necessary. Make sure that you call the person who is responsible for the payments as only he can guide you about the delay. It could be that the client has cash flow issues and just needs some extra time. By making this call you would get a fair idea of where they are standing.


Despite all your efforts, it is possible that the client refuses to pay heed and make the payment. As a last resort, you might be forced to take the legal route. Try to avoid this situation as much as you can.  If there is a settlement that can happen between you then make it a point to do so. In most cases, the warnings are sufficient to make the client notice and clear his dues and you may not have to adopt stricter measures from your side.

The views expressed in this article are those of the authors and do not necessarily reflect the views or policies of The World Financial Review.