Debt Recovery Procedures Checklist

These 5 steps can be used as an escalation process to contact your customers about an outstanding payment from friendly reminder through to letter of demand.

Step 1  Contact with a friendly payment reminder

Once the payment is overdue phone, email or mail the customer with a courtesy reminder. The customer may have forgotten, paid into the wrong bank account or other minor issue and your contact will be enough to get the invoice paid. Include your payment options, banking details and contact information to make it easier for your customer to pay you quickly.

Friendly reminder email template

Step 2  Contact with an overdue payment reminder

If the payment remains outstanding and the customer has missed the next agreed payment date, or there has been no contact, phone the customer or send another email or letter reminder of the money owing and request payment.

Overdue email template

Step 3  Contact your customer with a final notice

When the customer has not paid as per the terms of payment, and has missed any extended payment dates gain call or email them to discuss the outstanding invoice and request payment.

Final notice email template

Step 4  Try to make direct contact with your customer

If there is still no payment or response consider visiting the customer in person (or phoning them if previous contact has been via email) to ask for payment. This sometimes helps create a personal relationship with the customer that could be useful for future payments.

Follow up contact script

Step 5  Send a formal letter of demand

In the event that all attempts to contact them have failed, consider sending a letter of demand. This should be only done as a last resort, as it can damage your relationship with the customer.

Letter of demand template

If you still haven't been paid, then may consider using a debt collecting agency to collect the outstanding money from your customer.


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