The best way to deal with unpaid invoices
What are the collection options for unpaid invoices? There are plenty of options on the market. But think twice before choosing one. What is your goal? Getting your money back? Isn't it possible to do this more efficiently? Check out our analysis on how best to proceed.
We compared 4 strategies for dealing with outstanding invoices:
1. Ask a collection agency
How does it work?
To deal with unpaid invoices, you can call a collection agency. They specialize in dealing with unpaid invoices. They will persuade your debtors to pay the invoices.
How long does it take?
On average, a few weeks.
How much does it cost?
A percentage of the invoice amount, from 1 to 15%.
What is the impact on the customer relationship?
Neutral.
2. Use an attorney
How does it work?
Using a lawyer to handle unpaid invoices can be an option. You use a lawyer when you want to start legal proceedings. Only do this if your client is dishonest or disputes your invoice.
How long does it take?
From several weeks to several months.
How much does it cost?
A (high) hourly rate.
What is the impact on the customer relationship?
Negative
3. Engaging a bailiff.
How does it work?
You can ask a bailiff to collect your outstanding invoices. The bailiff officially brings a document to the attention of a specific person. The bailiff can go so far as to summon someone to court.
How long does it take?
On average, several weeks.
How much does it cost?
On average, 30 euros per letter.
What is the impact on the customer relationship?
Negative.
4. Automated communication
How does it work?
Dealing with unpaid invoices with automation is an innovative method. A text message can persuade your customer to pay their bill. Instead of using crude means to force the debtor to pay, you first take a more moderate approach. In this way, you reliably bring it back to the attention of your customer.
How long does it take?
On average, a few days.
How much does it cost?
Almost nothing.
What is the impact on the customer relationship?
Rather positive
Try automation to process unpaid invoices.
Automated communication is an interesting method of handling unpaid invoices. It gives fairly quick results, is affordable, and maintains the relationship with your customer. Text messaging software allows you to schedule these messages at any time, automate them and link them to your own CRM system.
Want to give it a try yourself? Then be sure to create a free trial account!
Claim outstanding invoices with effective text message reminders
