Maintain a good relationship with your client while securing the valuable payment of their invoice. The equation seems complex for SMEs and French SMEs. How do we handle the collection of unpaid payments?
Only 38% of French organizations pay on time. Nearly 8% of French companies even go so far as to grant themselves a delay of more than a month after the legal deadline (which is now 60 days after the invoice is issued, according to the Economic Modernization Law, LME). The figures from a survey conducted by the specialist Altares illustrate how common unpaid debts and delays are, especially in the BtoB world. How can we limit the break to get paid without severing relationships with clients?
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1 — Check the profile of your future clients
Because “prevention is better than cure,” watch your back. To do this, even before signing with your future client, don’t hesitate to take a look at the official website of the commercial courts, infograft. For each company, you will find information about the company’s capital and its possible losses. Be cautious if the company’s equity is already in the red.
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2 — Organize regular follow-ups on your client claims
To ensure you react over time and balance your cash flow, set up weekly accounting checkpoints. You will review the status of invoices and identify actions to take within the week to obtain payment as quickly as possible.
3 — Skillfully manage the renewal
From the careless client to the difficult case, for renewal, the best tactic is to “circle” your client from all sides. Ask one of your colleagues who has the best relationship with this late payer to play “good cop” while you continue with your drier emails. If that still doesn’t work, move to the next level. The manager of your company should also step in. It’s a way to involve other contacts as well.
4 — The registered letter
letter
After several months, the time comes for the formal notice letter to your late payer. More threatening, this registered letter can mention the possibility of appealing for a payment order, if there is no response within eight days. It must contain all the outstanding amounts of the concerned company as well as the report of the renewals made with their dates.
5 — The payment order
This is your last resort: the payment order from the commercial court can be simply requested online. You will only need to pay about 37 euros in court fees (including bailiff fees). Your debtor will then have one month to settle their debt. Another option is to go through a collection agency to avoid legal proceedings. These specialized firms will follow up with your creditor on your behalf via registered mail, phone calls, or threats of legal action. And if you have an urgent need for cash, consider the option of factoring companies that buy — for a fee — your unpaid invoices and then take care of collecting them.
At this stage, you will likely have already lost a lot of time and probably just as much money. But — the principles are mandatory — never give up. Every job deserves payment and every invoice itspayment.
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