In the finance industry, ‘Cash is King’ isn’t just a cliché; it’s the lifeblood of your business.
But as any Finance Director or Credit Controller knows, there is a massive gap between billing and banking.
Chasing late payments is often the most avoided task in the office. It’s awkward, it’s time-consuming, and if handled poorly, it can damage the very client relationships you worked so hard to build.
If your ‘Days Sales Outstanding’ (DSO) is creeping up, here is a strategic roadmap to getting those invoices settled.
1. The Pre-Chase: Set the stage for success
The best way to chase a payment is to ensure it never becomes “late” in the first place.
- Clear Terms: Ensure your payment terms are bold and impossible to miss on every invoice.
- The “Friendly Reminder”: Send a courtesy email three days before the due date. Often, an invoice has simply been buried in an inbox; a gentle nudge prevents the lapse.
2. The Psychology of the Chase: Be persistent, not pesty
When an invoice hits the 7-day overdue mark, it’s time to escalate. The key is to remain professional and objective.
- The Phone Call: In a world of digital noise, a 2-minute phone call is often more effective than ten emails. It humanizes the debt.
- The “Assume a Glitch” Approach: Start the conversation by asking if there was an issue with the invoice or the service. It gives the client a “face-saving” way to admit they forgot or to flag a genuine dispute early.
3. The systematic approach
Don’t chase at random. Have a fixed schedule:
- Day 1 Overdue: First polite email.
- Day 7 Overdue: Second email + phone call.
- Day 14 Overdue: Final notice before formal action.
Introducing Chaser: Turning accounts receivable into an asset
While the steps above are effective, they are also incredibly manual. For a growing finance team, spending hours every week manually typing ‘Just circling back on this…’ is a poor use of talent.
This is where Chaser comes in.
Chaser is the market leader in accounts receivable automation, designed to help businesses get paid faster without losing the “human touch.” Here is how they are transforming credit control:
- Automated, Yet Personal: Chaser doesn’t send “robotic” reminders. It sends emails that look like they were personally typed by you, from your own email address, including your signature.
- Smart Schedules: You can set up different chasing “cadences” for different types of clients. Your “Good Payers” might get a gentle nudge, while “High Risk” clients get a more frequent, firmer set of reminders.
- The Payment Portal: Chaser provides a dedicated portal for your customers, making it incredibly easy for them to view their statement and pay immediately via credit card or bank transfer.
- Data-Driven Insights: Their “Chase Intelligence” tool uses AI to tell you which clients are likely to pay late and, crucially, when is the best time of day to reach out to them to ensure a response.
Chaser will be at the financeSHOWCASE events throughout the year – come and speak to them about your chasing payments problems. Click here to find your nearest event.
