Winning new customers, signing contracts and selling goods are the goals of any company striving for success and growth. Unfortunately, entrepreneurs often encounter late payment of dues by customers, and yet the owner of the company is obliged to settle accounts with the tax authorities even in the event of failure to receive payment. How to deal with such a situation? What can be done when an invoice is not paid on time? 
Contractor does not pay the invoice - why is this happening?
When we fulfil our orders and the money is paid on time into the company account, everything works as it should: We are multiplying profits, paying salaries and not stressing about dealing with all the tax issues. But the reality is not so perfect, as anyone who runs a business knows. Although paying invoices on time seems obvious, the reality leaves no room for illusions. At least once in a while you get a customer who is significantly late with an invoice. Why does this happen? Is it just due to bad will? Not necessarily. There are certainly plenty of reasons for ignoring payment deadlines, but we can list a few of the most common:
- the invoice has not reached the customer - Sometimes the e-mail system or mail services fail, so it is always necessary to make sure that the document has reached the contractor. It is always advisable to ask for an acknowledgement of receipt of the invoice, which will dispel our doubts;
- Client is facing financial difficulties - If this is the case, it will be difficult for us to recover the debt quickly. However, we can check whether the debtor is currently making other investments;
- the company is awaiting payment - It is not uncommon for entrepreneurs who are in arrears with their invoices to wait for a payment from their counterparties. A vicious circle then ensues, in which the payment must be firmly demanded;
- the person responsible for transfers is on leave - Sometimes it so happens that the employee in charge of paying invoices is out of the company, so the receipt of funds will be delayed by a few days. The situation should not be prolonged - otherwise we can be sure that the debtor is playing for time.
Non-payment of an invoice - what should I do?
If we are not paid on time for a completed job, are we able to get out of the situation? We should certainly try. If we remain passive, we may find that the wait for payment is prolonged indefinitely. Here are some ways that should help if you are struggling with non-payment of an invoice:
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frequent reminders - The first step to be taken is simply to issue a simple but frequent reminder to settle the debt. In some situations, this reminder will allow us to deal with the problem. Remember that failure to pay an invoice on time is not necessarily a sign of bad will on the part of the customer. So call the company and talk to them. Find out why the delay occurred, explain the matter and, if necessary, set a new date for the transfer of funds. We can take this opportunity to emphasise that regular payment of the invoice is of crucial importance to us and is an important element of a fruitful cooperation;
call for payment or amicable dispute resolution - If reminders have not had the desired effect, it is a good idea to send a demand for payment. It is best to use a registered letter with acknowledgement of receipt, then we will have irrefutable proof in a possible court dispute. A call for payment will make the customer aware that we are serious about his/her delayed payment and will motivate him/her to solve the problem;
cessation of cooperation and termination of the agreement - when the above two methods have not worked, we can inform the counterparty that we want to terminate the relationship. Of course, this solution will not work if we are dealing with a one-off order. It is also worth considering termination of the contract and further consequences;
entry of the client in the register of debtors - nobody wants to do business with companies that do not pay their invoices. After all, we want to be paid on time for the work we have done, and listing a company in the debtors' register will certainly tarnish its image. You can do this after creating an account with BIG InfoMonitor, but three conditions must be met: the arrears arose at least 30 days ago, are at least PLN 500 and one month before the entry was made we sent the debtor a call for payment;
taking legal action - none of the above solutions resulted in us getting paid for the invoice? Then the least pleasant option still remains forM, which is to go to court. In most cases, the dispute ends with an order for payment and the bailiff will try to recover the amount owed plus statutory interest and court costs. Unfortunately, there will be a wait of at least a few months before we can reach the finality of the case.
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