Most of the businessmen work hard to run their business running. Whether they manufacture and sell a product or offer their valuable services to the clients, they deserve to get paid on time and on a regular basis for whatever they do. But in reality, many small business owners and large business owners struggle to get paid for their bills on time. They spend hours of time calling their clients each month asking for the money, to save this valuable time, businesses can use past due invoice template to following up with the clients to collect the payment. This way you can reduce your duration for the follow-up and reduce the unpaid client invoices that are piled up.
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Why You Should Consider a Past Due Invoice?
In the case of unpaid invoices, you might have lots of client accounts that are drawn out unpaid. The invoices and extra charges that are staking up, and leave you with extra hours of work and sometimes make you lose thousands of dollars for the unpaid invoices. Past due invoices are the best way to track unpaid customer accounts, send follow-up invoice and get paid as quickly as possible.
The overdue invoice templates allow you to organize the client data, track unpaid invoices, set reminders through payment reminder templates and collect the payment by your preferred method using invoicing software. By choosing a past due invoice to bill your clients for the due balances in a clear and professional way.
The most important thing is, with online past due invoice you do not have to keep looking at the folders stuffed with handwritten invoices or old copy of the bill. You can keep all the invoices in a separate folder of your desktop, laptop or in online software to be more organized. So, you get everything in one place to get the information handy whenever you want to change the details in it or send out a new bill.
Creating a standard, easily editable past due invoice for the business provides many advantages, such as:
- Get accurate results with past-due balances
- Get paid for overdue invoice instantly
- Organize the client’s account details
- Able to invoice clients quickly and free of cost
- PDF and printer-friendly format
- Keep all information on-hand for taxes
To take the above-mentioned advantages, you can follow up on the past due template by using the past due invoice templates. The first step for this is you need to search for the suitable invoice type according to your small business needs. You can download your selected template.
Download the Past Due Invoice Template
Undoubtedly, no one wants to chase a late payment and make a favorite part of invoicing processing. That’s where you can take the help of downloadable overdue invoice templates for creating a professional billing template. You can also download below given past due invoice template which will give you the freedom to instantly send this template to your clients.
How to Edit a Past Due Invoice?
Editing professional invoices with ease needs to pay a little attention which will help you create past due bills free of cost. Follow the below given simple instructions to edit the invoices that get you paid quickly, and decrease the overdue client accounts.
- Save the downloaded template at the safe place
- Invoice number
- Add your business branding, i.e. business logo, name, colors, and fonts
- Include client’s details, i.e. the client’s name, address, phone number, email address
- Summarize products and services with description, quantity, rates
- Add up total amount in the “Total Amount” section
- Specify preferred payment methods
- Describe the terms and conditions
- Include “Special Notes” for the client
You can use the blank fields to fill in the extra information that you want the client to know about your small business or invoice regarding details each and every time you create and send invoices. Apart from that, make sure that you don’t add irrelevant information and save the document appropriately and make it more efficient and profitable.
Types of Past Due Invoices
No matter in what business you are in, unpaid bills can outbreak your entire accounting and financial flows. But thankfully, you can create easy-to-use, editable invoices with past due templates that your business requires. Some of the examples of past due invoices include:
- Monthly retainer
- Hourly work
- Per-project invoice
- Payment for products
Whatever type of invoice template you choose for your business needs, when you choose the customizable invoice templates it will be easier for you to create and send invoices based on your business requirements.
Just fill in the accurate information in each invoice, such as a precise list of products, goods, and services along with the prices. Make sure all the details should be included clearly so that the client can understand your invoice without hassle.
Still, many people face challenges in asking for the overdue payment, and even if they are having a standard invoice template they still struggle with such a situation. To help you with such a situation here are some tips to avoid late payment in the first place only.
Tips to Avoid Past Due Payments in the First Place
When you send such payment reminders, most of you get hesitant and feel a little uncomfortable to chase the customers for the money they owe you for the services or products you have provided. So, the advice is to avoid such situations in the first place to prevent the possibility of late payments in the first place. Here are a few tips to help you avoid late payments from the clients.
Be honest as much as you can
If you are concerned about the chances of overdue payments, you always need to make sure that you convey your repayment terms honestly before the sale or right after signing the contract. This way, you will not leave a chance for your customers to avoid your due payments and your customer will also be aware of your repayment terms (carefully) when they get their first invoice.
Be specific about your deadline
Most of the businesses write “due date” in the invoice template. But that is a little unclear, and it leaves too much space for the customers to get a hint for wrong interpretation. Apart from the due date, you should be more specific about your deadline in your repayment time frame in the payment terms and condition section. For example, “Make a payment in 30 days to avoid late payment charges”. Or “You will get a 10% discount on your next purchase/services if you pay prior 15 days”. Such an addition will help your clients make a payment on time without taking much time.
Clarify the interest on late payments
Just like you pay interest charges on late payments on your business credits, your clients are equally accountable for paying you late. For that, you need to clarify the interest on late payments in the terms and conditions of your invoice. If you are not sure about how much you should charge for the late payments, you must go through the best practices before you include interest charges on your invoice.
These little tips help you avoid overdue payments and you are likely to receive the payments as soon as you complete your tasks or deliver the products and send your invoices to the clients. The clear instructions about the payments will help your client to have more clarity and they will be more likely to pay you on time.
What If the Clients Still Ignore Payment Requests for Outstanding Payment?
Now that you have followed all the tips and tricks given above, but still, clients are ignoring your payment requests for the overdue payment. If you are facing such issues, it is high time to think beyond the box and try to understand the reasons behind such action, such as, if the client has been relocated or you may be sending your payment requests at the incorrect email id, there is a typo in the postal address in case you have sent the payment request by mail or you are addressing to the wrong person or the wrong department.
In such scenarios, it is always better to communicate directly to the client if they are receiving your requests and if they have received the payment request and they are experiencing any issue in the payment method. You need to identify the actual issue your client is facing. It will be always effective if you talk to the client directly by a phone call or if possible in person to person and hear their side of the story the at the first hand and resolve the issue they are facing regarding the payment. This way, your client will also cooperate and understand your situation and they might also give you some hints on when they are going to pay, and then you can be also sure that you are going to get paid in near future.
In a Nutshell
It can be hard to keep your temper cool when your invoice payment is seriously overdue and past all the deadlines. After all, doing good business means you are getting paid on time for the business you are doing and it also motivates you to do a good job in the future. On the other side, your client will be also happy to have clear instructions for the payments and this will help them make payments on time. If you want to know more invoicing tips keep visiting our blogs on a regular basis.
1. What is the past due invoice template?
Answer: When a client misses the date for the invoice they have received, in this case, a business owner can send past due invoices. Basically, the past due invoice template is a legal polite way to remind your clients about the payment. So most of the business owners prefer to send past due invoices to get paid quickly.
2. Who can send past due invoices?
Answer: As a business owner, if you have sent an invoice earlier and your client missed the date for the payment, in this case, you may be required to send a past due invoice to remind for the payment. In other cases, if you have not sent any invoices but both you and the client agreed on the same payment date and/or payment method and the clients miss the payment, you need to send an overdue invoice template.
3. What should I include in my past due invoice?
Answer: In order to get paid quickly, you must include certain information in your overdue invoice. We have already included almost everything in this article. Just make sure that you include all the essential information following the tips that we have given into this article.
4. When should I send my past due invoice?
Answer: Sending past due invoices completely depends on your business policies and your financial cash flow. You may send such invoices as soon as the payment due date has passed, or you may simply remind about the payment to the client and if they ignore your reminder then it is the right time to send past due invoice. Generally, people send invoices after 30 days and then 60 days, so it completely depends on your preferences.
5. How do you chase an invoice politely?
Answer: After sending invoices you need to chase the clients for the payments. Some people chase by calling a client for the payment request, some write emails, basically, everyone has their own ways to chase the invoices for getting paid quickly. But, sending past due invoices is one of the best options to chase an invoice in a polite way.