![]() You decide, of course, but if you answer “Yes” to one of the following questions, charge the fees. When to charge administrative fees for overdue payments? Once you have defined your fee, you still have the choice to apply it or not. You can combine these rules or consult with a lawyer or your accountant. Nice, but what about an invoice of 20 euros? Are you really going to charge pennies or cents?Ī flat rate, but is, let’s say, 10 euros a reasonable fee for an unpaid invoice of several thousand euros? The longer your customer waits to pay, the higher the fee.Ī percentage of your invoice amount. These 3 options are the most popular (and reasonable) ones Īn interest calculated on an annual basis. It is your duty, as a business owner, to find the middle ground. Your client treated you badly and you want to punish them, somehow. What is a reasonable fee for overdue payments?ĭeciding a fee to charge customers who pay your invoice too late is not a pure mathematical exercise. Mention the exact additional fees and costs in your terms and conditions. The brutal reality of unpaid invoices shows that this is an illusion.īut that doesn’t mean that you cannot cover your back. But do not wait longer than 2 weeks at most to remind your customers of overdue invoices.Īs a business owner, you assume customers read and agree with your terms and conditions. There is no rule that works for every business. Or that your administration is a gigantic mess In all cases, do not postpone it too long. In that case, the bank transfer can easily take days. Your invoice is not for an international customer. This day is not on the weekend, or an official bank holiday. Postponing your reminder one more day after the due payment date can work. Or better wait a little longer before sending your payment reminder? There is nothing wrong with being strict in business, but customers have no control over how fast banks transfer money. It would be something between “impatient” and “the invoice police”. ![]() Imagine how you would look if you sent a payment reminder at that moment. So when you don’t see a payment from your customer on the due date, it is possible that the money is on its way. They take money faster than depositing it in your account. ![]() On the due payment day, then?Īlthough you could send your payment reminder the day after the due payment date, this may not be the best decision.īanks are greedy monsters. Think of energy suppliers, telecom, internet providers, etc. It is typical for enterprises that have a large consumer base and use recurring invoices. This timing is not suitable for every business. Remind customers before the invoice expires That means you have 3 opportunities to contact your customers to avoid outstanding invoices. You can send a payment reminder before, on or after the due payment date of your invoice. So make sure you don’t miss the golden nuggets… #1 Send your payment reminder ASAP Spoiler alert: software is just one item on the list. So, how can you achieve this too? What are the secret ingredients to deal less with chasing customers? In the same research, we found out that a whopping majority (73%) of these businesses get paid within 3 weeks after sending an invoice. ![]() One thing that struck us was how little of them had to send payment reminders. How do we know?Īt the end of 2022, we conducted research amongst 436 freelancers and SMBs that use CoManage to create invoices. 7 powerful tips to turn payment reminders into cashĪpply our tips and you will have to deal a lot less with this ugly part of doing business.
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