Late Payments? Use This Follow-Up Formula

Alright a question came to me yesterday that I felt the need to talk with you about and that’s how to address VERY late paying companies you work with.

This happens…a lot. It’s not uncommon to have balances due in 30/60/90 day ranges, but it can be cleaned up and managed better.

When a customer is over 30 days late and unresponsive, it's more than an inconvenience…it's a threat to your cash flow and now a financial risk. Here's a clear, professional, no-drama way to handle it that has worked for me:

✔ Step 1: Check the Basics First — Make sure the invoice was sent to the right person, the due date and total amount are clearly visible, and nothing is missing (like a PO or attachment). Sometimes it's just a paperwork bottleneck, not bad intent.

✔ Step 2: Send a Firm but Friendly Reminder — Keep it short and neutral. Example: “Hi [Name], just following up on Invoice #[###], which is now over 30 days past due. Please let me know if payment has been scheduled or if anything is holding it up. Thanks for your attention.” Avoid sounding emotional in your response as you're following up, not begging.

✔ Step 3: Set a Clear, Reasonable Deadline — If there's no reply, it’s time to outline next steps. Example: “If we don’t receive payment by [Date], we may need to pause services or take further action per our policy/conract.” This creates accountability without being confrontational and gives a deadline. If it were me….I wouldn’t make this many days at this point so give them 2-3 business days.

✔ Step 4: Escalate (Calmly and Strategically) — Reach out to a different contact in their finance or leadership team. Reference the original invoice, your follow-ups, and your request for resolution. If you suspect cash issues, offer a payment plan, but only if it works for your business and they seem to elude they aren’t going to pay all that’s owed.

✔ Step 5: Stay Professional, but Don’t Let It Slide — Following up is not pushy in my opinion, it’s responsible. You’ve delivered value, and you’re simply asking to be paid. If nothing works, consider involving collections or legal options, but always document your steps first. I always say we have to do our due diligence before involving an outside agency or legal.

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