What happens when you miss a credit card payment?

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If the client still hasn’t paid you, send a final demand letter before filing a lawsuit. A final demand is much the same as the debt collection letter described above, but it usually more clearly states that you intend to sue if the client doesn’t pay. Your choice will depend on the time that’s elapsed, the amount owed, and possibly your desire to salvage this client for future business dealings.

Make sure that you are always invoicing immediately after they receive the product or service. Also, follow up with payment reminders and how many days they have left until the due date. If the client owes you substantially more than the small claims court limit for your state, you can bring your lawsuit to the trial court.

Before you dive into a project, ensure that your client is fully aware of the projected costs and that you take time to answer any questions upfront. They run a credit check on your customers before agreeing to purchase their invoices. If you use this service for multiple customers’ invoices, the service fees add up, and you may lose money in the long run. If you’re looking for a way to improve your payment collection process, consider using SMS payment reminders. These webinars connect you with other businesses and expert advisors, so you can learn from each other and get the latest information on dealing with 소액결제 미납.

There are also plenty of articles, blog posts, and guides written on the subject. Visit Chaser’s blog and resources center containing a wealth of ready-to-use PDF guides, whitepapers, and templates to support your receivables process. One of the benefits of using SMS messages is they have higher open rates than email (98%, compared to 20-30% for email), meaning your customers are more likely to see open your payment reminder message. Interest will be paid at the unpaid tax interest (UTI) rate, which is 11.9% for the 2023–24 financial year.

Depending on the situation, you could also consider offering to accept the payment in installments to ensure that you can collect the debt and increase cash flow in the short term. Whatever the reason, late payments can have a major impact on a company’s cash flow. Fortunately, there are steps businesses of any size, in any industry, can take to reduce late payments and improve accounts receivable performance. By sending an automatic, polite, and personalised message to all customers with outstanding invoices, TaxAssist Norwich was able to get £20,000 paid for one of their clients in just 30 minutes. This case study also demonstrates the benefit of taking a proactive approach to late payments can have.

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