When Should a Small Business Owner Follow Up on an Unpaid Invoice?

One of the sometimes uncomfortable parts of running a small business is asking to be paid.

You provide the service. You send the invoice. The due date comes and goes, and then you start wondering: Should I follow up now? Should I wait a few more days? Am I being too pushy?

I've asked myself those questions more than once.

When you have good relationships with your customers, it can be tempting to assume the payment is coming and wait. And sometimes it is. An invoice may simply have been overlooked, entered incorrectly, sent to the wrong person, or missed in a payment cycle.

But I've learned that following up doesn't have to mean you're accusing a customer of not paying. It can simply mean you're paying attention to your business.

You Have a Right to Ask About Your Money

Small businesses have bills to pay too.

We have payroll, insurance, supplies, taxes, vendors, benefits, and all the other expenses that continue whether a customer has paid us yet or not.

That means accounts receivable isn't just an accounting number. It's money you've already earned that your business is waiting to receive.

There is nothing inappropriate about asking about an invoice once it becomes due.

In fact, I think there is value in addressing it sooner rather than waiting until an invoice is significantly overdue.

Start With Curiosity, Not Confrontation

My preference is to make the first communication simple.

I don't assume someone intentionally hasn't paid. Instead, I ask about the status of the invoice.

There are many innocent reasons a payment can be delayed. Sometimes just asking uncovers the problem.

Maybe the invoice has an incorrect date. Maybe it wasn't entered into the customer's system. Maybe the person who normally processes it is out of the office. Maybe it missed the company's most recent payment run.

If you wait several weeks because you don't want to bother anyone, you may simply be delaying the discovery of a problem that could have been fixed with one email.

Know Your Payment Terms

Before following up, I think it's important to know exactly what you've agreed to.

Is the invoice due upon receipt? Net 15? Net 30? Net 60?

If you've agreed to Net 30 terms, for example, I wouldn't treat the invoice like it's late on day 20 just because I would prefer to have the money sooner.

But once the agreed-upon date has passed, I think it's reasonable to ask.

Clear payment terms make these conversations much easier because the follow-up isn't personal. You're simply following the terms both businesses agreed to.

Following Up Is Part of Running the Business

This is probably the bigger lesson for me.

I used to wonder whether I should wait because I didn't want to seem impatient. But there's a difference between being impatient and responsibly managing your company's finances.

You don't need to send an angry collection notice the day after an invoice is due.

You can simply say:

"I'm following up on invoice #____, which was due on ____. Could you please let me know the status of payment?"

That's not rude. That's business.

And if the response is, "We found an error and we'll include it in Friday's payment," that's useful information. Now you know what happened and when to expect your money.

It also gives your customer an opportunity to correct a mistake they may not have known existed.

Good Customers Usually Don't Mind

Something else I've learned is that good business relationships can handle reasonable questions about money.

A professional customer isn't likely to be offended because you politely asked about a legitimate invoice. In fact, good communication can strengthen the relationship.

I've even had a customer thank me for reaching out early instead of waiting.

That was a good reminder for me.

Following up isn't necessarily creating a problem. Sometimes you're helping both businesses catch one before it becomes bigger.

My Rule Going Forward

I don't think there needs to be a complicated formula.

My approach is becoming:

Send clear invoices. Know the payment terms. Keep track of what's outstanding. And when something is due and hasn't been paid, ask about it.

Be polite. Assume good intentions. But don't be afraid to follow up.

You've already done the work.

It's okay to ask when you're going to be paid.

Hummingbird Solutions LLC