Sales figures might tell you how much business you’ve won, but they don’t always tell you how much money you’ll actually receive.
After all, a sale doesn’t pay the bills until the customer pays the invoice.
And as every business owner knows, cash flow matters.
Some customers pay promptly, some need a gentle reminder, and others seem to disappear the moment an invoice becomes due.
The question is: how should you approach an overdue invoice as time goes on?
Having a clear credit control process can help you identify payment problems early, protect customer relationships and avoid letting outstanding invoices become serious debts.
Here’s how to approach invoices that are 30, 60 and 90 days overdue.
30 Days Overdue: Start With a Friendly Reminder
If an invoice is 30 days past its agreed payment date, it’s time to establish why it hasn’t been paid.
At this stage, a friendly approach is often the best place to start.
The customer may have overlooked the invoice, sent it to the wrong department or simply forgotten to arrange payment.
What should you do?
- Send a polite payment reminder, including the invoice number, amount and original due date.
- Confirm that the customer received the invoice and has everything needed to process it.
- Follow up with a telephone call if you haven’t received a response.
- Ask for a specific payment date rather than accepting a vague promise.
- Record any conversations, payment commitments or queries.
The aim isn’t to damage the customer relationship. It’s to understand what’s holding up payment and agree on a way forward.
A quick conversation now could save weeks of chasing later.
60 Days Overdue: Take a More Structured Approach
If an invoice remains unpaid after 60 days, despite your reminders, it’s time to look more closely at what’s happening.
Repeatedly sending the same email and hoping for a different result probably isn’t going to help.
You need to establish whether the customer is unwilling to pay, unable to pay or has a genuine reason for withholding payment.
Your next steps might include:
- Contacting the person responsible for authorising payments.
- Reviewing previous conversations and any payment promises.
- Investigating outstanding complaints or disputes.
- Agreeing on a realistic payment arrangement where appropriate.
- Reviewing whether contractual or statutory late-payment interest and compensation may apply.
- Escalating the matter internally if your normal credit control process isn’t working.
At this stage, consistency is important.
Make sure your customer understands what is outstanding, when payment is expected and what may happen if the situation remains unresolved.
And remember: a customer who communicates openly about a temporary cash flow problem may need a different approach from one who repeatedly ignores you.
90 Days Overdue: Consider Your Recovery Options
When an invoice reaches 90 days overdue, it’s time to assess whether your existing approach is likely to recover the money.
That doesn’t automatically mean taking legal action.
But it does mean asking some more serious questions.
For example:
- Is the customer experiencing financial difficulties?
- Is there a genuine dispute about the goods or services provided?
- Have previous payment arrangements been broken?
- Do you have the documentation needed to support your claim?
- Is the amount owed worth pursuing, considering the likely costs and prospects of recovery?
Depending on the circumstances, your options might include negotiating a settlement, arranging a structured repayment plan, using alternative dispute resolution or issuing a formal letter before action.
You may also want to seek specialist debt recovery advice before spending money on legal proceedings.
The important thing is to make an informed decision rather than continuing to chase without a clear strategy.
Don’t Wait Until an Invoice Is 90 Days Overdue
One of the biggest mistakes businesses make is treating credit control as something that only happens once a payment is late.
Good credit control starts much earlier.
Clear payment terms, accurate invoices, sensible credit limits and regular communication can all help prevent overdue balances from building up.
And if a customer does fall behind, having an agreed escalation process means your team knows what to do next.
You don’t have to choose between maintaining a good customer relationship and protecting your cash flow.
Often, the right approach can help you achieve both.
Need Help Recovering Overdue Invoices?
If you’re spending more time chasing payments than running your business, it might be time for a different approach.
At Talk to Ron, we help businesses review their credit control processes, resolve payment issues and find practical ways to recover outstanding debts.
Whether you’re dealing with an invoice that’s recently become overdue or a balance that’s been outstanding for months, we’re happy to talk through your options.
Request a Consultation and let’s see how we can help.