Get paid on-time, every time.
The best time to follow up on collections? Three months ago.
The second-best time? Today.
Letting unpaid invoices pile up is like leaving cash in the parking lot—exposed, forgotten, and gone before you know it. The longer you wait, the harder it is to collect. Here’s how to fix it.
The Cost of Waiting
Unpaid invoices don’t just sit quietly. They snowball into bigger problems.
- 30% Drop in Recovery
Once an invoice hits 90 days past due, your chances of collecting drop by nearly a third. - 3x the Work
Chasing old debt takes three times more emails, calls, and effort than collecting on-time.
Every day you delay turns a small problem into a cash flow crisis. Let’s turn that around.
Step 1: Start With Clear Communication
Crystal Clear Terms
State your payment terms clearly, on every estimate, contract, and invoice. No fine print. No room for confusion. If it’s due upon receipt, say it loud and proud.
Collection Language
Ditch phrases like “Net 30.” Instead, say:
“Payment will be collected on [date].”
Use active, confident language that sets clear expectations.
Secure Payment Info Upfront
Before the job starts, collect the payment method, credit card, ACH, or bank info. When it’s time to bill, you’re ready to roll.
Step 2: Use Email to Your Advantage
Emails are easy, scalable, and effective, if done right.
Your Email Action Plan:
- Email all open invoices weekly
- Check for duplicates and fix any errors—accuracy builds trust
- Include a “Pay Now” link in every email
- Keep it professional, friendly, and to the point
- Send during business hours (Tues–Thurs for best open rates)
Pro Tip: Avoid Mondays (catch-up chaos) and Fridays (mentally out-of-office).
Step 3: Pick Up the Phone
Emails can be ignored. Calls can’t.
Make Real Contact
A phone call shows you’re serious. It builds pressure—in a professional way—and gives you a chance to understand what’s really going on.
Effective Voicemails
Leave a message that:
- States who you are
- Lists the invoice and amount due
- Asks for a call back within 24 hours
- Includes your direct number and best callback times
Take Action
Pick a customer, pull up their open invoices, and start dialing. Block time each week for collections. It adds up fast.
Step 4: Build a Consistent Collection System
No more random follow-ups. No more “I’ll get to it next week.”
Follow This Timeline:
- 0–15 Days Past Due: Send weekly reminder emails
- 15–90 Days Past Due: Switch to weekly phone calls
- 90+ Days Past Due: Escalate to collections agency
Log every call, every promise, and every payment. Consistency shows you’re organized and you mean business.
Step 5: Offer Payment Plans That Work
Keep Cash Flowing
Instead of waiting for one big check that may never come, offer weekly payment plans. Small payments keep money moving.
Get Something Today
Ask: “What can you pay today?”
Even a partial payment shows good faith and breaks the logjam.
Document Everything
Put every agreement in writing. A simple email confirmation creates a solid paper trail.
Step 6: Ditch the “Check Is in the Mail” Game
It’s 2025. There’s a better way.
Go Digital:
- Use ACH, debit, or credit card processing
- Accept processing fees. It’s worth the time and headache savings
- Set up auto-pay wherever possible
Watch Out: Monitor for expired cards and failed payments. Stay ahead of disruptions by keeping info current.
Your AR Action Plan: Get Paid, On Purpose
Collections require action, not hope.
- Build your collection system
- Set clear expectations from the start
- Use emails, calls, and payment plans consistently
- Prioritize follow-through every single week
Remember: Accounts receivable is money you’ve already earned.
Don’t let it slip away.