How to chase unpaid wholesale invoices

Chasing works best when it is early, regular and a little dull. Here is a process, and the wording, to get trade invoices paid without damaging the relationship.

Principles

  • Start before the due date. A heads-up five days out prevents most late payments.
  • Be regular. A reminder on a fixed schedule is not personal, so it is easier for both sides.
  • Make paying easy. Every message needs the amount, the invoice number and a link to pay.
  • Use more than email. Texts and calls reach the person who can actually pay.
  • Have a consequence. Pausing new orders gets more attention than any wording.

Wording you can copy

StageMessage
Before dueHi Sam, a quick note that invoice 1047 for $8,420.00 is due on 12 Sep. You can pay here: [link]. Thanks for your order.
Due todayHi Sam, invoice 1047 for $8,420.00 is due today. Pay in one tap here: [link].
7 days lateHi Sam, invoice 1047 for $8,420.00 is now 7 days overdue. Please pay here: [link], or reply if there is a problem with the order.
14 days lateHi Sam, invoice 1047 is 14 days overdue, so new orders on your account are paused until it is paid. Pay here: [link].
30 days lateHi Sam, invoice 1047 is 30 days overdue. Please pay today to avoid further action. Late payment interest and compensation now apply under our terms: [link].

Only mention statutory interest if your buyer is a UK business and you intend to claim it.

When to stop supplying

Decide this in advance and put it in your trade terms, so it is a rule rather than a judgement call each time. Holding orders at 14 days overdue is common. Terms Due applies the rule automatically at checkout. See credit holds.

Questions

Is it acceptable to text business customers about invoices?

Messages about an existing account are generally accepted, but say in your trade terms that you may contact buyers by text about payments, and always include a way to opt out.

Should I add late fees?

Only if your trade terms allow it. In the UK you can claim statutory interest and fixed compensation on business debts. See our UK late payment interest guide.

Stop chasing wholesale invoices by hand

Install Terms Due, set a credit limit for each buyer and let the app hold, remind and collect.

Install on Shopify