The Best Way To Handle Unpaid Invoices
Maiwenn Marchand
10 Sep, 2020

What are the means of debt collection to deal with unpaid invoices? There are plenty available on the market. But think twice before choosing one. What is your goal? Recovering your money? Isn’t it possible to do so more efficiently? To help you find the best way to handle unpaid invoices, read this analysis we did.

deal with unpaid invoices

We compared 4 strategies to deal with unpaid invoices:

1. Ask a debt-collection agency

How does it work?
To deal with unpaid invoices, you can call a debt-collection agency. They’re specialised in covering unpaid invoices. They will persuade your debtors to pay your invoices.

How long does it take?
A few weeks on average.

How much does it cost?
A percentage of the amount of the invoice, from 1 to 15%.

How is your relationship with your customer impacted?
Neutral.

2. Use a Lawyer

How does it work?
Using a lawyer to deal with unpaid invoices can be an option. You call on a lawyer when you want to start a legal procedure. You will do this only if your customer is dishonest or if he contests you invoice.

How long does it take?
From a few weeks to several months.

How much does it cost?
A (high) hourly rate.

How is your relationship with your customer impacted?
Negative

3. Calling in a bailiff

How does it work?
You can ask a bailiff to handle your unpaid invoices. The bailiff will officially bring a document to the attention of a specific person. The bailiff can go so far as to summon someone in court.

How long does it take?
A few weeks on average.

How much does it cost?
On average 30 euro per letter.

How is your relationship with your customer impacted?
Negative.

4. Automated communication

How does it work?
Dealing with unpaid invoices with automation is an innovative method. An SMS or an automated phone call can persuade your customer to pay his invoice.

How long does it take?
A few days on average.

How much does it cost?
Almost nothing.

How is your relationship with your customer impacted?
Neutral.

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