The easiest way to get invoices paid (coronavirus update)
Follow our simple steps to bring much needed cash flow into your business during these uncertain times
Getting invoices paid is the number one cash flow consideration in these uncertain times. We’ve been inundated with calls from business owners hunting for a simple process they can use to speed the payment of sales invoices and ensure the cash keeps flowing (even if it is a fraction of the norm). To help we’re sharing our advice and a straight forward coronavirus late payment letter template for chasing payment of overdue invoices.
Getting invoices paid – normal rules no longer apply
Usually ‘good’ payers may well turn ‘bad’ as businesses are struggling financially and operationally to deal with the mounting pressure, this means that the usual ‘faceless’ credit control processes are no longer appropriate. To get through this, honesty, understanding and flexibility will be key.
1- A considerate approach to credit control will work best, especially as all businesses up and down the supply chain are now affected by coronavirus.
2 – Send our template email, and then follow up with a phone call. An honest conversation is far more likely to help you get paid, while a solitary email can easily be ignored.
3 – If payment in full is not possible, consider an informal payment plan arrangement meaning you receive some monies, while your customer is not penalised for paying late.
Coronavirus late payment letter template
Hi (Name), I hope you are well. This is a difficult time for all businesses facing the coronavirus crisis and the resulting economic uncertainty it brings. At (insert your business name) we are doing all we can to keep the cash flowing - endeavouring to pay suppliers owed and arranging payment plans where necessary. Reviewing our accounts we can see that invoice XXX for £XXX is currently overdue. We would really appreciate if payment could be settled please. If you would like to arrange a payment plan we would be more than happy to discuss this with you as we all need to support each other in these unknown times. I look forward to hearing from you. Kind regards,
Kim Redwood- Lee says, “Virtually every business, irrespective of size, is now feeling the full impact of coronavirus. This is having a catastrophic affect on the payment of invoices. In normal circumstances we should expect customers to honour the agreed credit terms and pay in full and on time, but these are not normal circumstances and business owners must now be realistic when it comes to credit control and the payment of sales invoices.
The name of the game is to keep the cash flowing and to secure payment on as many outstanding invoices as possible. But, be prepared to put in place payment plans where this is not possible. We are all in the same boat, and how you treat customers now will impact their view of you when things start to return to normal.”
If your business as been impacted by the Coronavirus (COVID-19) outbreak and you are now struggling financially and operationally to deal with the increasing pressure of debtor, supplier and cash flow management, then we are here to help.
About Oscar Fairchild:
Oscar Fairchild (incorporating Redwood Clarke since 01.09.18) is an ACCA chartered and certified and AAT qualified accountancy, financial consultancy & bookkeeping practice with offices in The City of London, and Billericay, Essex. Offering a wide range of services including Self-Assessment Services, Annual Returns, VAT Returns, Credit Control, Payroll, Auto Enrolment Pension and Management Account services to high growth businesses and licensed London taxi drivers across London, Essex and Hertfordshire.