invoice folder with a note that says unpaid

What To Do When Your Customer Does Not Pay

Take these steps to do everything you can to get paid when your customer is dragging out payment.

  • Call your customer and resend the invoices.  Be sure that you submitted the invoice to the correct email address.  Follow up with all contacts making sure that they understand they are seriously past due.  If your customer is having their own cash flow issues attempt to work out a payment program.
  • Give your customer a specific date that you must be paid.  Clearly communicate that you will escalate your collection efforts after that date – and that those efforts will have negative consequences for your customer.
  • Get all your documents in order.  Purchase orders, contracts, invoices and sign offs will clearly prove your case if you must go to court.
  • Adjust your own cash flow projections.  Do you need to seek additional capital or cut back on expenses until you receive payment?
  • Hire a collection agency or lawyer.  Another option for debts less than $10,000 is to file in small claims court.  This is a relatively fast process that does not require you to hire an attorney. 
  • Learn you lesson.  Review your new customer onboarding and invoicing process.  Are you running credit reports on new customers?  Are past due invoices being called on before they are way past due?

American Receivable not only provides BEST RATED factoring service we also protect our clients from non-paying customers by utilizing our extensive credit files.  To learn more about how American Receivable can protect your company from non-payment and provide the money you need to grow call us today.

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We sincerely appreciate our trusted partners for these referrals: Specialty Rigging Company needs factoring to expand into a new market.  $150k a month. Oilfield Trucking