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How to Collect Late Payments from Customers
Quick Answer How to Collect Late Payments from Customers Collect late payments in escalating steps: day 1 reminder, day 7 statement, day 14 formal letter, day 21 letter of demand with interest, day 30 cut off supply and consider the Small Claims Court (up to R20,000) or an attorney. Charge interest and collection costs if your terms allow – and put those terms on every invoice and quote. The escalation ladder Day Step Tone 1 Friendly email + statement Helpful 7 Phone call to the accounts person Firm 14 Formal letter referencing terms Businesslike 21 Letter of demand + interest Serious 30 Stop credit / pause work; Small Claims or…
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How to Manage Business Cash Flow: A Practical Guide for South African SMEs
Quick Answer How to Manage Business Cash Flow: A Practical Guide for South African SMEs Cash flow is the timing of money in versus money out – and more small businesses die from bad timing than from low profit. The fix: a simple 13-week cash forecast, deposits on big jobs, strict payment terms, a tax savings account, and a buffer of at least one month of fixed costs. Why profitable businesses run out of cash You pay suppliers and salaries monthly, but customers pay you in 30-60 days (or later). Growth makes it worse: every new job needs cash before it brings money in. That gap is the working capital…
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How to Collect Late Payments from Customers
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