Build a personalized and systematic collection strategy
#OUTSTANDING INVOICES DOWNLOAD#
Need help writing effective email reminders? Download our free email templates.ĥ strategies to efficiently collect outstanding invoices 1. Detected too late, these can have a terrible impact on your business.
Late payments sometimes mean underlying customer dispute, pricing disagreement, bad market fit, and bad debt. But what’s the point if cash doesn’t follow? Regardless of your last funding or the cash in your bank account, collecting payment is crucial and should be a priority to build a healthy and scaling business.Īccounts Receivables are expensive: collecting payment isn’t just about asking “bad payers” to pay their invoices. Why you should care about outstanding invoices?Ĭash is the oxygen of business owners - especially small business owners : Most companies measure their success in net credit sales. Thus you’re more likely to receive your money if you create a payment strategy targeting clients while invoices are still outstanding, rather than wait for late invoices.
After all, your client may still pay before the due date and it's chasing an overdue invoice that costs you time and money.īut your invoices are 60% less likely to be paid once they pass that 90-day threshold. This is also known as a past due invoice.Īn outstanding invoice doesn’t seem like a problem at first. When an invoice is overdue it means your client has not respected his payments terms and paid for a service. When an invoice is outstanding it means your client has not paid for a service but they are yet to cross the deadline to do so. But the two words are not synonyms and the difference is more than a semantic issue. The terms outstanding and overdue are often used interchangeably when describing the payment status of an invoice. What’s the difference between outstanding and overdue invoices?
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