Outstanding invoices are a thorn in the side of companies once the payment term has expired. Sometimes there is a dispute, but not always. An unpaid invoice means you need to take action towards a debtor. For example, by manually sending a reminder or perhaps it’s already time for a warning. This is annoying and time-consuming. Therefore, it’s ideal that there is a solution with software from Payt for credit management. The automation of this software ensures quick payment and optimal maintenance of your company’s liquidity.
Invoice not paid
If an invoice is not paid, it’s time to take action to increase the chance of a quick payment and to prevent cash flow problems. The first step is to send a reminder. Do this as soon as possible, preferably two days after the invoice’s due date. If the payment is still not made, it is courteous to send a second invoice reminder after sixteen days. However, it is also possible to immediately send a warning or to make personal contact with the debtor.
Following up on outstanding invoices
The entire process of reminders and warnings can be automated with our credit management software. This saves time that can be used to focus on your business operations. Automating credit management is a much smarter and more efficient process for following up on outstanding invoices.
Direct notification and payment via iDeal
Payt’s software provides, for example, a direct notification in case of late payment. Automatically sending messages is part of the functionalities. Moreover, a message sent via Payt also offers the possibility for debtors to make the payment via iDeal. This debtor-friendly method ensures that the payment is received even faster.
What is a defaulter?
A defaulter is a customer who does not pay an invoice. The meaning can be narrowed by stating that a defaulter is considered a poor payer. Of course, a debtor is not immediately labelled as a defaulter if the payment term is exceeded by a day or two. In this light, a defaulter is more likely when the payment of an invoice remains outstanding after (automatic) reminders and a warning. In that case, it is important to take action and start a collection procedure to enforce payment. If the friendly collection does not yield results, a court visit is inevitable.
Dealing smarter with defaulters
It is better to prevent the collection process and aim to improve the payment behaviour of debtors. Payt helps with dealing with debtors to prevent them from eventually being labelled as defaulters. Our credit management software ensures automatic follow-up of outstanding invoices and thus a better cash flow and reduction of collection costs. Want to know more about how Payt works? Feel free to contact us.
