HOMEWORK

On the assumption that you have done work upon request of a customer, and you have sent an invoice(s) the following steps should be applicable to all businesses (regardless of size):

STEP 1. Print a list of debtors
Detailing if possible debtor's phone number, invoice details, amount outstanding, and days invoice outstanding.

STEP 2. Call the debtors individually (armed with above information) and for each customer:
1. Confirm current address details;
2. Confirm receipt of your invoice;
3. Ask any reason for non-payment;
4. Ask for payment;
5. Collect payment on the phone or obtain a promise to pay;
6. Send a letter confirming conversation and payment or promise to pay

STEP 3. Final letter of demand
If no payment is received, after you have carried out the above steps, then send a final letter of demand to the customer.  For example, a letter that says something like this:

Dear Customer
We refer to our phone conversation on [date] and our letter dated [date] .
Despite your promise to pay we still have not received the sum of $amount.
Kindly make payment before 4pm on [date].
In the event that we do not receive payment, we will refer this matter to our lawyer for recovery.
Yours faithfully,

STEP 4 - Refer to legal
If you still have not received payment, refer the matter to us for legal collection.

Send an email to kristine@hopkinslawyers.com.au or call on 03 9607 8279 to discuss the best collection method for your business.