# Tips for effective debt-chasing communications
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2021-12-02
Category: FINANCE
Category URL: https://financedigest.com/category/finance
Meta Title: Expert Advice on Chasing Late Payments Efficiently
Meta Description: Get practical tips from Darcey Quigley & Co CEO Lynne Darcey Quigley on communicating with late payers and securing payment promptly. Don't let
URL: https://financedigest.com/tips-for-effective-debt-chasing-communicationshtml

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_By **Lynne Darcey Quigley,** CEO and founder of corporate debt collection specialists Darcey Quigley & Co, advises on how to send effective letters, emails, and invoices to late payers._

If another business owes your business money, chasing this debt is no easy task – but it is imperative you secure the payment as soon as possible. Research puts the total amount of late payment debt well into the billions, and with insolvency rates starting to skyrocket, time is of the essence.

Despite the gravity of this debt as a national issue – the basics still apply. Communicating with late payers [relies on being polite but firm](https://www.financedigest.com/us-banks-rely-on-fintech-firms-to-overcome-legacy-systems.html "US banks rely on Fintech firms to overcome legacy systems"), and most importantly, persistent. A late payer will use every excuse under the sun to avoid their responsibilities, but you [must exhaust every option before you call the experts](https://www.financedigest.com/customs-expert-british-firms-must-consider-transitional-simplified-procedures-brexit.html "Customs expert: British firms must consider Transitional Simplified Procedures for Brexit") for help. This means starting with the basics – emails, letters, and invoices. If these are all done correctly, you leave the late payer with no excuses.

[Ignorance is often](https://www.financedigest.com/investors-often-ignore-capital-gains-tax-but-should-consider-selling-now-to-avoid-a-higher-future-tax.html "Investors often ignore capital gains tax, but should consider selling now to avoid a higher future tax") the go-to excuse for a serial debtor or a sneaky customer – and any confusion or mistakes in the invoicing process will be exploited as an excuse not to pay.

So, starting with some all-too-often forgotten basics:

Make sure all the details are correct such as addresses, payment details, correctly itemising products/services delivered and checking your invoice and reference numbers are accurate. Also, make sure you include your VAT information if you are VAT registered.

Send it to the right person, in the correct department. If you do not know the best person to send your invoice to, get in touch with your customer and double-check.

When sending an invoice, always include it as a downloadable pdf file, with a relevant file name, as an email attachment. This makes it safe, universally accessible, and when they save it, it won’t just be a string of numbers in their overcrowded ‘Downloads’ folder.

Include as much relevant information in your email subject line, so both you and your [customer will find it easier to find the invoice if needed](https://www.financedigest.com/why-empathy-needs-to-sit-at-the-heart-of-bbls-and-cbils-customer-service.html "Why empathy needs to sit at the heart of BBLS and CBILS customer service").

When it comes to writing your email, there are some [key details](https://www.financedigest.com/fish-feed-market-detailed-survey-on-key-trends-leading-players-revolutionary-opportunities-2030.html "Fish Feed Market – DETAILED SURVEY ON KEY TRENDS, LEADING PLAYERS & REVOLUTIONARY OPPORTUNITIES 2030") to include in the body of your email:

- Invoice number
- Payment date
- Your name and company
- Information on the [product or service](https://www.financedigest.com/document-admin-drains-productivity-businesses-especially-financial-services.html "Document admin drains productivity in all businesses, especially those in financial services.") delivered
- Sending a reminder on your payment date

When your payment date arrives, we recommend sending a gentle reminder that payment is due that day. Include your company and invoice number and “payment due today” in the headline, so your customer will instantly [see that the invoice needs to be paid that day](https://www.financedigest.com/uk-retailers-see-40-jump-in-boxing-day-shoppers-springboard.html "UK retailers see 40% jump in Boxing Day shoppers -Springboard").

At every point – send all relevant details, such as the original invoice, the total due, the due date, etc. This makes it harder for the culprit to claim ignorance.

**Email to chase payment**

If a payment is missed, it is best to chase it immediately. Mistakes can happen, and your missed payment could be entirely accidental. However, many are not – and there is also the chance that your [customer may be intentionally avoiding paying](https://www.financedigest.com/shell-energy-to-pay-for-overcharging-price-cap-customers-ofgem.html "Shell Energy to pay for overcharging price cap customers -Ofgem").

You do not want to compromise your relationship with your customer. After all, your reputation and repeat [business are at stake](https://www.financedigest.com/essity-mulls-selling-vinda-stake-and-consumer-tissue-private-label-europe-business.html "Essity mulls selling Vinda stake and Consumer Tissue Private Label Europe business"), so it is essential always to remain courteous when chasing payment – but don’t forget to be straight to the point.

Again, include everything you can in your follow-up emails – and highlight the date the payment was due.

Often a light prompt is all it takes for an overdue invoice to be paid. However, you may [need to take a firmer approach](https://www.financedigest.com/why-a-modern-organisation-needs-an-agile-approach-to-software-asset-management.html "Why a modern organisation needs an agile approach to software asset management") if your first chaser email is ignored, or you are stalled. Your more substantial chaser email will have a greater [sense of urgency](https://www.financedigest.com/consolidated-audit-trail-a-renewed-sense-of-urgency.html "Consolidated Audit Trail: a renewed sense of urgency") – but again, remain polite. A measured and reasonable tone goes a long [way and being too firm may put someone off paying as soon](https://www.financedigest.com/the-sky-is-no-limit-for-vaisala-vaisalas-pressure-and-humidity-sensors-are-soon-again-on-their-way-to-space.html "The Sky Is No Limit for Vaisala: Vaisala’s Pressure and Humidity Sensors Are Soon Again on Their Way to Space") as they can.

**Sending letters to chase [late payment](https://www.financedigest.com/the-impact-of-late-payments-on-sme.html "The Impact Of Late Payments On SME")**

Sending a letter to chase [late payment](https://www.financedigest.com/how-big-is-the-late-payments-crisis-and-who-will-break-the-deadlock.html "How big is the late payments crisis and who will break the deadlock?") is very similar to sending emails. In fact, your approach, the language you use, and when you send them are very much the same as the emails we covered.

Now, you may be asking what the point in sending letters then is?

When chasing overdue payment, you want to be as hard to ignore as you can and [communicating with your customer](https://www.financedigest.com/talk-to-me-the-changing-face-of-customer-communications.html "TALK TO ME :THE CHANGING FACE OF CUSTOMER COMMUNICATIONS") across multiple channels keeps you in the front of your customer’s mind and harder to avoid.

The typical [business email](https://www.financedigest.com/what-is-business-email-compromise.html "What is business email compromise?") inbox can be a very hectic place, often meaning your emails could be missed. As [businesses receive so few letters each day compared to the number](https://www.financedigest.com/apple-hostshigh-tech-start-ups-from-worlds-number-one-university-business-incubator.html "Apple hostshigh-tech start-ups from world’s number one university business incubator") of emails, there is a far lesser risk of a missed letter.

The downside to sending letters is that they are more of an inconvenience to send than email, so you may want to save letters for your more [critical communications](https://www.financedigest.com/cloudstreet-and-goodmill-systems-partner-to-deliver-flawless-mobile-connectivity-and-coverage-for-critical-communications.html "Cloudstreet and Goodmill Systems Partner to Deliver Flawless Mobile Connectivity and Coverage for Critical Communications"), such as when an invoice becomes overdue.

**Writing a [warning letter chasing payment](https://www.financedigest.com/risk-of-uk-balance-of-payments-crisis-under-truss-is-rising-deutsche-bank-warns.html "Risk of UK balance of payments crisis under Truss is rising, Deutsche Bank warns")**

A [warning letter is the first letter to send](https://www.financedigest.com/putin-to-send-doomsday-warning-to-west-at-russias-ww2-victory-parade.html "Putin to send ‘doomsday’ warning to West at Russia’s WW2 victory parade") once an invoice is overdue. A [firm](https://www.financedigest.com/increasing-regulatory-red-tape-promptsa-new-approachto-trading-data-management-among-fs-firms.html "Increasing regulatory red tape prompts a new approach to trading data management among FS firms") but polite approach is the best approach to take, and you should include:

- Your company name and address
- Your [customer’s name](https://www.financedigest.com/myfirmsapp-celebrates-being-named-a-finalist-in-besmas-customer-service-team-of-the-year-award.html "MyFirmsApp Celebrates being Named a Finalist in BESMA’s Customer Service Team of the Year Award") and address
- Invoice number
- Total amount owed
- Payment date and days overdue
- Explain that payment terms have been breached
- Payment details
- Your contact information
- Ask your [customer if they have any questions since this could be what is delaying the payment](https://www.financedigest.com/curating-a-fully-contactless-customer-experience-for-payments.html "Curating A Fully Contactless Customer Experience for Payments ").
- Include a copy of your invoice with the letter

**Getting The Professionals Involved**

The direction of the UK economy, and the rapidly rising numbers of insolvencies, means you should act [sooner rather than later](https://www.financedigest.com/invest-in-data-management-now-and-reap-the-rewards-sooner-than-later.html "Invest in data management now and reap the rewards sooner than later") – before it is too late. Deciding whether to outsource [debt collection to a third party is a big decision for a business](https://www.financedigest.com/how-to-free-yourself-from-business-energy-debts.html "How to free yourself from business energy debts") to make, and sometimes they can be nervous if they have not used a debt recovery partner before.

If you find yourself in this position, you should always go with a partner with a [track record](https://www.financedigest.com/norway-on-track-for-record-gas-export-will-be-ready-for-winter-gassco-ceo.html "Norway on track for record gas export, will be ready for winter -Gassco CEO") recovering commercial debt with a service you can rely on.


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