Handling an Overdue Invoice and How to Ask for Payment Professionally

Dealing with an overdue invoice is the last thing a sales professional wants to spend time on – time that should be spent solving client problems and bringing in new business. But unpaid invoices are a reality. In this video, I explain how to ask for payment professionally and effectively.

Whenever possible, get paid up front. Structure your invoice terms so it appears you’re giving a discount for payment in advance.

Inevitably, though, you’ll still sometimes encounter an overdue invoice. It’s important to address the situation promptly and tactfully. Learning how to ask for payment professionally can salvage a business relationship at a critical point.

As soon as you realize a client has missed a payment, send a reminder letter saying they’re past due and reiterating your invoice terms. Call and email to follow up. Be specific about how many days they’re in arrears – whether it’s 5,15, 30, or 45 days.

Be courteous but firm. Continue to contact your client regularly – always with a respectful, matter-of-fact tone, never being nasty or taking things personally.

Often, what will finally propel a client to pay an overdue invoice is the threat that you plan to discontinue service or suspend product delivery. Plant the idea of this probability in your client’s mind early on. Give your client a deadline after which you will automatically stop service.

My final tip for how to ask for payment professionally involves the decision maker in your client’s company. There’s someone in every company who can make sure you get paid – the CFO, controller, CEO, or owner. Go to the top, draw a line in the sand, and get paid what you’re owed.

Timestamps:

00:00 – How to handle an overdue invoice
00:30 – How to ask for payment professionally
01:14 – Avoid this and Get Payment Up Front
01:45 – Three Steps to Professionally Set Your Payment Terms and Get Them
03:3  – Dave Gives You a Gift to Help With Marketing
04:25 – Success Stories: Dave Shares HIs Stories About Converting Tough Clients to Payment in Advance
06:01 – Offer Discount to Get Paid Right Now
06:36 – Adjust Your Attitude
08:22 – How to Write an Email and Direct Mail to Make Sure You Get Paid
09:33 – How and When to Write a Final Notice
10:07 – How to Make the Payment Phone Call
11:00 – The Exact Script that Will Get You Paid ASAP

📺Watch and Enjoy!