get your dues back

How to Collect Your Bad Dues in 6 Easy Steps

How to Collect Your Bad Dues in 6 Easy Steps


If you’re a small business owner, and you have huge pile of dues to be collected.
As you are selling products or services with a credit policy. Then these effective tips may help you get your bad dues paid.
Your collectible invoices dues might have piled up because


  • You don’t want to appear desperate
  • You fear loosing a customer if you ask for dues
  • You sympathize with customer inability to pay
  • Your customer not responding to your requests
  • You fear customer might return your goods


There are many such hypothetical scenarios which delay your due collections.
Its really bad when you’re not getting paid for all the hard work you did.
If you don’t collect these for while, you may end up broke, your business may go down.

Have a look at below steps, These will help you to collect, your  invoice dues and run your business smoothly.


Collect Your Bad Dues


  1. Collect Invoices.
  2. Gather all the invoices which are due. Segregate them by customer. If your are using a accounting software, its easy to generate a due invoices report by customer. List out all the customers with dues with the due amount. You need to prioritise your list. Whether you want to target customer, who have lot of dues, or customer with previous payment history. If you’re are in financial crunch, go for the customer with good payment history. Chances are high that they clear your dues with little fallow up.

    Take prints of all the due invoices of customers you want to target. Arrange them in in sequence. Create a simple statement by using spread sheet, with invoice numbers, purchase order number, amount due, and age of the invoice etc. And at end of the statement mention the summary of dues.


  3. Contact the Customer.

    First collect customer contact details. You need to collect working contact numbers, contact person name, email address, physical address. Your customer might have changed the contact information, or relocated, or contact person has changed.
    How you get these information? well, first look at your accounting software, your business dairies,customer visiting card boxes etc. If you don’t find information, check your local business dairies like yellow pages, search internet for their business website.

    You will find some information. Once you collect information, now time is to contact, call them, or email them. Ask for the right contact for person details who handles invoice clearance. Give them information about invoices which are due and let them know their account is on hold.


  5. An Attempt to Renew Relationship.

    Brief about them about your best products, services and new offering. Let them know their account is on hold and you are interested in renewing it. Make them feel, what they are loosing out, by not paying you. Make it clear, no shipment of products and services will be provided until the dues are cleared.


  7. Send Invoices.

    Mail all invoices which are due along with summary statement, to your client. Request for a return receipt, you can also send priority mail, with delivery confirmation. Once your receive the acknowledgement. Contact your client again, and ask them whether they have received the mail. If required share with them mail details, date and mail receipt number. You can also ask below questions to clarify, about the invoices and their current state.


    1. What they are doing with the invoices ?
    2. Do they find any discrepancies in invoices ? If so clear their doubts.
    3. Whether the invoices need to be approved.
    4. Who is the approving person, get the contact details? if possible.
    5. Find out right person who makes payment and when the payment will be made.


  9. Payment Options.

    When you send invoices to your client, along with you can send a self addressed envelope, and ask them to send their check with enclosed envelope. This will help to get your invoices paid faster. You can also give them other options of payment, like wire transfer or by other means. Ask them to pay by a particular date. By setting a time limit, you are making it clear, how important it is for them to pay. If you are generous enough,you can offer some discount, if they clear all the dues at once.


  11. Fallow it Up.

Once you have the details about who approves, who makes payment and when. Fallow up on that date, call the client and ask for the payment details, check number, invoices cleared or amount paid. Once you receive all the past dues. You need to think about, how you’re going to avoid such situations again.

You need a strategy, Do you want to change your credit policy, or you deal with pre-payment, or payment at the time of delivery. Whatever you decide upon, keep it in writing and get the agreement from the client.


Every day business getting is competitive, you need to wisely choose your options, remember, by having a credit policy, you send out a message to your client that you mean business


Hope you fallow these steps, and soon collect all your invoice dues. Please support us by sharing this post your friends and family.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.