Taking Action on Overdue Invoices

Despite international trade’s growth, a significant challenge persists – unpaid export invoices. Approximately 20% of these invoices go uncollected due to various factors, including global economic conditions and company-specific issues.

As an exporter or shipper, dealing with overdue invoices can be a frustrating experience. However, by taking prompt action and employing effective strategies, you can significantly improve your chances of successful recovery.

Initial Steps: A Proactive Approach

1. Issue Written Reminders

• Send a maximum of two written reminders.
• Avoid using terms like “first reminder” as it implies further actions.
• Clearly state the consequences of non-payment, such as escalating the matter.
• Begin with a friendly reminder and follow up with a more formal notice.

2. Make a Phone Call

• Focus solely on the overdue invoice during the conversation.
• Directly address the reason for the payment delay.
• Insist on a concrete payment date.
• Document the phone call and send a follow-up email or letter to confirm the discussion.

Understanding the Reasons for Non-Payment
Common reasons for non-payment include:

• Forgot to Pay: A simple oversight that can be resolved with a friendly reminder.
• Cannot Pay: Financial difficulties may require flexible payment arrangements or debt collection assistance.
• Refuse to Pay: Disputes or disagreements may necessitate legal action or debt collection services.

When to Seek Professional Help
If your initial efforts prove unsuccessful, it’s time to consider professional assistance. Recoupex specializes in trade invoice recovery and can provide expert guidance and support.

When you take these proactive steps and seek professional help when needed, you can effectively manage overdue invoices and protect your business’s financial health.