A Friendly Guide to Handling Late Payments
Waiting for payment can be frustrating, especially when you’ve provided a service or held an appointment. To ensure you get paid promptly while maintaining professionalism, here’s a clear, step-by-step guide to handling late payments in a way that’s both effective and respectful. Getting paid in your service business, such as massage therapy, beauty therapy, or dental practice is critical.
Step 1: The Same Day – Polite Payment Reminder
If a client misses an appointment or fails to pay, send them a polite email the same day. Include your bank account details and a link to your website’s terms and conditions, which should outline your cancellation and no-show policy. Request payment by the next business day.
Pro Tip: Follow up with a friendly text message asking them to check their email. This ensures your reminder doesn’t get overlooked.
Step 2: Two Business Days Later – Follow Up
If the payment hasn’t been made within two business days, reach out again. Send a polite email reminding them of the outstanding amount, and why it’s owed (e.g., missed appointment or services rendered), and include your bank details once more. Politely request payment within the next seven days.
At this stage, a text message isn’t necessary, keep it professional and straightforward.
Step 3: Seven Days Later – Gentle Final Reminder
If payment still hasn’t been received by day seven, send a short, gentle reminder email stating that payment is due that day. Always include your bank details for convenience.
Bonus Tip: Send a text message on this day as well, specifying the amount owed and asking them to check their email. This double touchpoint increases the chances of a response.
Step 4: Two More Business Days – Time to Escalate
If payment hasn’t been made after two additional business days, it’s time to escalate the matter. Contact us or your designated collections team for further action.
Why Act Quickly?
The longer you wait, the less urgency the debtor feels. Most people know when they’re in the wrong, but that sense of guilt fades over time. Remember, your time is valuable, and unpaid services are essentially money lost. Don’t feel guilty about pursuing what you’re owed.
The 14-Day Rule for Handling Late Payments
From the date of the missed appointment or service, the entire process, from first reminder to escalation, should take no more than 14 days. This ensures timely resolution and minimises the risk of non-payment. It also reduces the impact on your business’s cash flow.
Exceptions to the Rule
If you’re already in communication with the debtor and have a strong relationship, you may choose to extend some flexibility. However, if they’re unresponsive to emails, texts, or calls, it’s a clear sign they’re not prioritising their commitment to you.
Handling Threats or Bad Reviews
If a debtor threatens to leave bad reviews or damage your reputation, remember that this is illegal. Seek legal advice from a solicitor immediately to protect your business and reputation.
Final Thoughts on Handling Late Payments
Prompt and polite communication is key to resolving payment issues. By following this structured approach, you’ll maintain professionalism while ensuring you’re paid for your hard work. Don’t let unpaid invoices slide, your time and services are worth it!
If you need help or advice, drop us a message.
With over 30 years of experience working with more than 200 businesses across a wide range of industries, I bring a strong mix of business insight, technical expertise, and leadership to drive results. From startups to global enterprises, I have played a key role in overcoming challenges, driving growth, and streamlining processes. I’m passionate about empowering small businesses and individuals, building strong relationships, and delivering lasting value. Specialising in debt collection, I help organisations manage their receivables and improve cash flow, ensuring long-term success.
My expertise covers crafting business strategies, optimising processes, mentoring leaders, and providing guidance on IT Service Management and debt recovery solutions for small and medium businesses.