Buzz
Practical strategies to ensure clients, friends, and family repay you
When a business client’s invoice is overdue or a friend or family member hasn’t repaid a loan, it’s essential to handle the situation delicately. Financial stability often depends on timely payments, but approaching the topic can be uncomfortable. By being courteous, clear, and proactive, you can maintain healthy relationships while ensuring you receive what’s owed. This guide offers actionable advice on when and how to send reminders, along with tips to make the process smoother. Keep reading to master the art of requesting repayment gracefully!
Key Points to Remember
- Send a brief, friendly reminder email a week before the payment is due. Clearly state the due date, amount owed, and available payment methods.
- Follow up with a polite yet firm email weekly after the due date passes. Reiterate payment instructions and mention any potential late fees or interest.
- If emails go unanswered, call the individual directly. Maintain professionalism and emphasize the urgency of settling the overdue payment.
Step-by-Step Guide
How to Politely Remind a Business Client to Pay
Send a courteous email reminder one week before the due date. If your client hasn’t settled their invoice by the deadline, draft a concise, professional email to gently remind them of the payment details, including the amount, due date, terms, and available payment methods. Use a friendly tone and consider adding “Friendly Reminder” in the subject line or message to convey a non-confrontational approach.
- For instance, you could write, “Subject: Friendly Reminder - Invoice #1234 Due on 6/5. Hi Lukas, I hope this message finds you well. This is a gentle reminder that payment for invoice #1234, issued on 5/26, is due by 6/5. You can settle the payment online via [link] or mail a check to our office at [address]. Attached is a copy of the invoice for your reference. Should you need any assistance, feel free to reach out. Best regards, [your name].”
Compose a polite and professional reminder on the due date. Maintain a respectful tone even if the payment hasn’t been received by the deadline. Avoid assumptions about their intentions and simply provide a clear reminder of the outstanding amount and payment options.
- For example, you might email, “Subject: Friendly Reminder: Invoice #1234 Due Today. Hi Nadine, This is a quick reminder that your payment for invoice #1234, sent on 5/26, is due today, 6/5. You can complete the payment online at [link] or via the bank details provided in the attached invoice. If you have any questions, don’t hesitate to contact me. Best, [your name].”
Follow up with weekly reminders after the payment is overdue. While it may feel awkward, it’s important to assertively yet politely remind your client of their overdue payment. Staying calm and professional increases the likelihood of a positive response.
- If applicable, mention any interest charges that will apply after a specified period.
- For example, write, “Subject: Urgent - Overdue Payment for Invoice #1234. Hi Adam, I’m reaching out to inform you that payment for invoice #1234 is now overdue. As per our agreement, a 5% interest fee will be applied if the invoice remains unpaid after 6/15. I’ve attached the invoice for your reference. Payments can be made online or via bank transfer. If you’ve already sent the payment, please ignore this message. Thank you for your prompt attention to this matter. Best, [your name].”
Call the client if email reminders go unanswered. Approach the conversation with professionalism and courtesy. Avoid blaming the client, as your emails may have been overlooked or sent to spam. Clearly state the payment terms and available methods.
- Start the call by introducing yourself and addressing the overdue payment.
- For example, say, “Hello Ted, this is [your name] from ABC Marketing. Thank you for your continued partnership. I’m calling to remind you that invoice #1234, due on 6/5, is now overdue. We’d appreciate it if you could settle the payment at your earliest convenience. As a reminder, we accept payments online or by check.”
- If the client is unavailable, leave a polite voicemail requesting a callback.
Provide a discount if the client remains non-compliant. While receiving less than the full amount isn’t ideal, securing partial payment is better than none. After 3-5 follow-ups regarding the overdue payment, send a final notice offering a discount if they settle within a specified timeframe. This can motivate the client to clear their dues promptly.
- For instance, email, “Subject: Overdue Payment Notice for Invoice #1234. Hi Enid, I hope you’re doing well. This is a reminder that payment for invoice #1234, due on 6/5, remains outstanding. You can pay online at [link] or via bank transfer, as detailed in the attached invoice. If payment is made within 48 hours, we’ll apply a 10% discount. Please let me know if you need any assistance. Best, [your name].”
- Alternatively, propose a discount for early payment, such as 10% off if paid within 48 hours of the initial reminder.
How to Politely Remind a Friend or Family Member to Repay
Send a gentle reminder via email or text before and on the due date. If you’ve lent a significant amount to a friend or family member, a polite reminder can help ensure timely repayment. While it may feel uncomfortable, clear communication about the deadline and payment methods can prevent misunderstandings.
- For example, message, “Hi Josie, just a friendly reminder that your loan is due on 6/5. You can repay via Venmo ([username]) or cash. Let me know if you need any assistance!”
- On the due date, text, “Hey Ravi, hope all is well! A quick reminder that your $1,000 loan is due today. You can send the payment via Venmo, PayPal ([username]), or direct bank transfer. Feel free to reach out if you need help.”
- For smaller amounts, like a meal, text, “Hey, just checking in about the dinner I covered last week. Could you repay me via Venmo or PayPal when you get a chance?”
- If you’ve requested money on Venmo, use the app’s reminder feature by navigating to your profile, selecting the incomplete notification, and tapping “Remind.”
Inquire about the expected payment date if the deadline has passed. If your friend or family member misses the payment deadline, approach the situation calmly. Avoid passive-aggressive tones, as they may cause defensiveness. Instead, kindly remind them of the overdue amount and any applicable late fees.
- For example, text, “Hi Kenya, just a reminder that your payment was due on 6/5 and is now a week overdue. When can I expect the repayment? Venmo, PayPal, or bank transfer works for me. Let me know if you need any help.”
- For smaller amounts, message, “Hey, remember the $30 I lent you last month? Could you repay it via Venmo or PayPal when possible?”
Call or speak in person if repayment is still pending. If weeks have passed without payment, reach out directly. Politely remind them of the amount owed, the due date, and ask when they can settle the payment.
- For example, say, “Hi Darien, how are you? I wanted to check in about the loan. The payment was due on 6/5, and I haven’t received it yet. Do you have an idea of when you can repay me?”
Casually mention the loan in conversation to remind your friend. If directly asking for repayment feels uncomfortable or if they haven’t responded to your reminders, subtly bring up the purpose of the loan. This can gently jog their memory and open the door to discussing repayment.
- For example, if they borrowed $500 for a car, you might ask, “How’s the new car treating you?”
Propose a payment plan if your friend can’t repay the full amount immediately. Understand that your friend or family member may be facing financial difficulties. If they can’t meet the agreed-upon deadline, suggest a flexible repayment schedule, such as weekly or monthly installments. This approach maintains goodwill and ensures you eventually recover the owed amount.
- Reach out via text, call, or in person. Be straightforward yet compassionate, and discuss the debt while offering a manageable repayment plan.
- For instance, message, “Hey, just checking in. I know we agreed on 6/5 for repayment, but I understand things come up. Would $50/month work for you? Let me know what you think.”
Explain why you need the money back. While repayment is your right, sharing your own financial constraints can encourage your friend to prioritize settling the debt. Letting them know how their payment will help you cover essential expenses can motivate them to act sooner.
- If they haven’t responded, casually mention your financial situation or send a text like, “Hey, I’m in a bit of a tight spot right now. Could you repay the loan soon? It would really help.”
Effective Invoicing Practices for Clients
Provide clients with clear invoices and payment deadlines upfront. When delivering services, email the client a detailed invoice along with the payment due date. Follow up to address any questions and ensure they understand the terms.
- For example, email, “Subject: Invoice #1234 Due on 6/5. Hi Javier, I hope you’re well. Attached is the invoice for our social media marketing services, due on 6/5. If you have any questions, feel free to reach out. Best, [your name].”
Clearly outline the consequences of non-payment to your client. When discussing payment terms, explicitly state any penalties, such as interest charges or service suspension, for overdue payments. Ensure these terms are communicated in your initial correspondence, specifying when they will take effect.
- For example, include, “Per our agreement, a 2% interest fee will apply if the payment remains unpaid for 10 days after 6/15.”
- For new clients, consider offering some flexibility, while for repeat clients with a history of late payments, issue a warning about potential termination of services.
Offer multiple payment options for client convenience. Limiting clients to a single payment method can create unnecessary hurdles. Provide various options, such as online payments via credit or debit cards, or traditional methods like mailing a check, to make the process smoother for both parties.
Set up automated reminders for your business. Using invoicing software to schedule automatic email or text reminders saves time and ensures timely follow-ups. Customize the frequency and tone of these reminders to maintain professionalism and encourage prompt responses.
- When creating automated reminders, use a polite and professional tone. Include personalized touches like your company logo, a warm greeting, and your signature to enhance engagement.
- If your business uses PayPal, leverage its automatic invoicing feature for seamless payment tracking.
Request upfront payment from clients. To avoid chasing payments later, ask for a deposit or full payment before commencing work. This approach not only secures your revenue but also allows you to focus on delivering quality service without financial distractions.
Guidelines for Lending Money to Friends and Family
Draft a written agreement for significant loans to friends or family. When lending a substantial amount, such as for a home down payment, create a loan agreement detailing payment terms, due dates, and any interest or late fees. While it may feel formal, this step ensures clarity and prevents potential disputes.
- Offer flexible payment options, such as cash, Venmo, PayPal, or bank transfers, to make repayment easier.
- Interest rates for personal loans typically stay below 6%.
- For example, email, “Hi Silvia, I’m formalizing our loan agreement to ensure we’re on the same page. You borrowed $1,000 on 3/5 for tuition, with repayment due by 6/5. If unpaid by then, a $5 weekly fee will apply. Please confirm your agreement to these terms. Let me know if you have any questions.”
Offset the debt by having your friend cover smaller expenses. If repaying the full amount is challenging, suggest reducing the debt by having your friend or family member cover minor costs, like concert tickets or meals. Deduct these amounts from the total owed.
- Track payments and adjustments in an online spreadsheet or a written log.
- For smaller expenses, like drinks, simply ask your friend to cover the next round as repayment.
Only lend money you can afford to lose. When helping friends or family financially, consider the possibility of not being repaid. If lending $500 would jeopardize your ability to pay rent, it’s better to decline. However, if the amount is manageable, assisting a loved one in need can be worthwhile.
- Declining a loan request can be difficult, but honesty about your financial situation prevents misunderstandings and preserves relationships.
- If uncomfortable lending money, kindly say, “It’s not personal, but I’m not comfortable loaning money. I’m happy to help in other ways if possible.”
