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How to Write Effective Past Due Invoice Emails: Templates and Best Practices

Gaviti

In certain cases, youll also need to follow up with a past due invoice email. Why Past Due Invoice Emails Are Essential Financial issues, administrative error, and miscommunication of payment terms are the most common reasons businesses fail to pay invoices on time. Manage customer risk.

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Avoid these Six Collection Myths

Your Virtual Credit Manager

Collectors spend most of their time asking for payments While it is true collectors are constantly requesting payment of past due balances, once that request is made they end up spending most of their time resolving disputes and invoice discrepancies. For more on collection efficiency, check out this article.

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Sales Commissions Impact the Collection Process

Your Virtual Credit Manager

it just might help them pay you sooner!

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Effectively Collecting Receivables Is a Time Management Challenge

Your Virtual Credit Manager

Effective collections can also reduce bad debt losses by compensating for a liberal or weak Credit Control function. Simply defined, collections is the process of contacting customers to secure payment for your invoices. For the most part collections deals with past due invoices — those not paid within established terms.

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Balancing Credit Sales with Profits

Your Virtual Credit Manager

It affects the level of bad debt loss (uncollected Accounts Receivables) you suffer. Selling only to financially strong customers reduces the risk of bad debt loss, (and the cost of Credit and Collections activity required). The increased risk of a significant bad debt loss that your firm bears.

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Position Your AR to Enhance Working Capital

Your Virtual Credit Manager

Who absorbs any potential bad debt loss — does the lender have recourse to return the AR if they cannot collect it versus a non-recourse arrangement? Clean up your AR Ledger In a perfect world, your AR Ledger would contain only whole, current invoices. No seriously past due invoices and no “Clutter.”

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Debt Collection Mistakes Can Prove Costly

Your Virtual Credit Manager

Having your collection efforts back-stopped by a collection agency provides additional leverage to your efforts to get your customers to pay, avoid bad debt losses and preserve future sales to seriously delinquent customers. For more about working with Collection Agencies, check out this post.