Typically, no one likes to talk about money. Whether it's personal shame of how you're handling your own debt or asking for money from people who owe you, talking out loud to someone about it can make your palms sweaty. If you're running a small or growing business, it can feel like even more of a struggle. After all, your business provides quality services or products and that's what you do best. Your clients know their part of the deal is paying for those products and services and yet... some invoices go unpaid. 

Don't fret. Here's how to talk to clients with unpaid invoices.

Check Your Expectations

The first step is to review your communication with the client. Go back over your initial emails, notes, and the written contract. Make sure the contract is signed and that the expectation of client payment is spelled out clearly. Was your work or product delivered by the due date? Did the client express any dissatisfaction with your work? Look over your invoice and make sure it included the agreed amount due, due date, who should be paid, and how.  If you're client paid via check, did you deposit the check? Are your payment systems working correctly?

Friendly Follow-Up

With no indication that your client was dissatisfied and that all communications were clear, you can take a breath. You've done your part. Instead of taking non-payment personally, consider that some clients don't pay on time for various harmless reasons. The invoice could have been overlooked, misplaced, or forgotten.  Send an email with a friendly question - "Was this payment sent already?" You can also ask if they had questions about the invoice or if they need other assistance. Don't assume they're trying to stiff you on payment. 

Download our free past-due letter templates

Set Up Payment Options

Sometimes your client may be experiencing their own financial challenges. If they're still responsive to you and could use some help with payments, consider setting up other payment options. Maybe it's time to pick up the phone and have a deeper discussion about what they can pay and when. Can you set up a payment plan and still get paid what you're owed? You may have to terminate services with your client but, if you're open to it, you can still work with them to get paid for what you've done so far. When you do decide on a payment plan, put it in writing and have your client sign in agreement. 

Bring in Support 

You've reached out to you client, offered payment options, and they still refuse to communicate or pay. Again, don't take it personally but instead, recognize your options. Ideally, you have included a collections policy in your agreement with the client. The policy will inform your client of consequences for late or non-payments. If you are unable to collect on your own (typically called first-party collections), you do have the option of collecting through third-party collections. Third-party collections with your business clients can be attempted with a B2B or commercial collections agency. 

Some benefits of working with a third-party collection agency include:

• Lessening the stress of tracking down a client who owes you money
• The ability to focus on what you do best
• Collections technologies and experience that may not be available within your company
• Best practices that you can implement to avoid unpaid invoices later
• No cost for trying, unless they can collect

Instead of worrying yourself about how to approach the delicate topic of money, follow these steps to get ahead of the problem. Remember, asking for payment for a product or service you've already provided isn't personal - it's business. If you can't get a response, even after taking a friendly approach, your invoice could still get paid with a little help.

To learn more about B2B collections, read How It Works.