Your product or service is excellent but if your business processes aren’t excellent too, you risk having numerous unpaid invoices.

Here are 7 tips to stop unpaid invoices.

Tip 1 – Watertight terms of business

Often, businesses forget to adjust their terms of business, and they only realise that they are inadequate when a customer does not pay.

Make sure that your terms properly reflect your processes.  Always keep your terms under review especially as the business grows. 

Tip 2 – Invoice properly and promptly

All invoices must contain at the very least the following information: –

1. a unique identification number (UIN).
2. your company name, address and contact information.
3. the company name and address of the customer you’re invoicing.
4. a clear description of what you are charging for.
5. the date the goods or service were provided (supply date).
6. the date of the invoice.
7. the amount(s) being charged.
8. The VAT amount, if applicable.
9. the total amount owed.

You may also wish to consider an earlier post which provides some bonus tips for your invoices.

Make sure that you invoice promptly in accordance with your terms of business this way your customer is less likely to question what you are charging for.

Tip 3 – track

Track when invoices are sent so you can diarise and plan to receive monies into your business.

Tip 4 – Manage

Manage the invoicing process or pay someone to do it for you.  It is important not to let unpaid invoices slip and remain unpaid.

Tip 5 – Review

Review customer interactions, what are they saying? Is there a reason why they are not paying?  Can they pay? Will they pay?  Does your customer think you’ll let them get away without paying?

Tip 6 – Chase

Send reminders before the due date to try and avoid late invoices. Swiftly chase any late invoices.

Tip 7 – Legal action!

If you find yourself with an unpaid invoice, take swift legal advice.  Factor in a budget to help with the recovery process.

How we can help you

Johnson May are debt recovery solicitors and we offer low fixed fees to help our clients get invoices paid. 

We are based in Beckenham, London but we service clients throughout England.

Our debt recovery process follows an approach that champions communication to recover payments swiftly for our clients.

Make a free enquiry

Call us on 020 8150 7171, email info@johnsonmay.com or complete a Free Online Enquiry for a free, no-obligation discussion and let us explain your legal rights and options.