Picture this…
A client reaches out to you for a project, you guys discuss what you need to, and all project and budget requirements are set. You get a certain percentage upfront, with a promise from the client to complete payment on project completion.
A few days later, you complete the work and send in your invoice… only to be met with SILENCE.
No acknowledgment, no payment confirmation, just the unsettling quiet of an unanswered email. You give it some time and then send a “polite” reminder… still nothing.
Before anxiety sets in, let’s explore how to handle this situation professionally and effectively.
Prevention: Setting the Foundation
The best way to handle invoice issues is to prevent them. Before we dive into solutions, ensure you have these basics in place:
- Clear Payment Terms
– Include payment deadlines in your contract: Ensure you get the payment deadlines in writing, with your client agreeing to these terms.
– Specify acceptable payment methods.
– Define late payment penalties: Depending on the client and the nature of the relationship existing between both of you, you can spell out clearly the fact there’d be a penalty for late payment. This could be an extra charge on the original project cost, or on a future project. Note that this can only be effective in situations where you have built a good relationship with the client and understand the type of value you bring to the fore.
– Set clear invoice acknowledgment expectations.
- Professional Invoice Practices
– Send invoices at consistent times.
– Use professional invoicing software.
– Include all relevant project details.
– Make payment instructions crystal clear.
But in cases where this is inevitable, how do you follow through with a ghosted invoice?
The Follow-Up Timeline
Day 1-2: Give Space
– Wait 24-48 hours before following up.
– Check spam folders to be sure you’re not barking at the wrong tree.
– Verify the email address.
– Review your sent folder to confirm invoice delivery.
Day 3: First Follow-Up
- Send a gentle reminder email, something to look like this:
Subject: Following up with Invoice #[Number] for [Project name]
Hi [Client name],
I hope you’re well. I wanted to confirm that you received my invoice sent on [date] for [project name]. Could you please let me know if you need any clarification?
Best regards,
[Your name]
Day 7: Second Follow-Up
– Reference previous communications.
– Attach the invoice again.
– Keep the tone professional and assume good faith.
– Request explicit confirmation.
Day 14: Final Reminder
– Be more direct about requiring acknowledgment from your client.
– Reference contract terms if applicable.
– Consider alternative contact methods.
– Maintain professionalism.
Now that you’ve tried all this and still not heard any response then here’s how you can escalate this problem.
Escalation Strategies
If you still haven’t received acknowledgment after your follow-ups:
- Change Communication Channels
– Try a more direct channel like calling instead of emailing.
– Message on professional platforms (LinkedIn, Slack) to find out the reason for the delay.
– Contact alternative team members.
– Reach out to accounts payable directly.
- Professional Escalation
– Contact your client’s supervisor if you know them.
– Reach out to the project manager.
– Consider involving your point of contact’s colleagues.
- Final Steps
– Send a formal letter.
– Consider legal options… yes, if you have to, go the legal route.
– Evaluate the client relationship.
I know there are times when situations like these are unavoidable (client emergency, ill health, etc.) and grace should be extended to the client in such times (after all, we are all humans). But when this is not the case, here are a few red flags to watch out for in “potential” ghosts.
Red Flags to Watch For
Be alert to these warning signs:
– Pattern of ignored communications.
– Multiple excuses for delayed responses.
– Sudden change in communication style.
– Avoiding direct questions about payment.
Moving Forward: Strengthening Your Process
- Update Your Contracts
– Add specific acknowledgment requirements.
– Include a timeline for payment processing.
– Define consequences for non-response or late payments.
– Specify preferred communication methods.
- Improve Your Invoicing System
– Use automated reminders.
– Implement digital payment options.
– Create an invoice tracking system.
– Document all communication attempts.
- Build Better Client Relationships
– Regular check-ins during projects.
– Clear communication expectations.
– Professional but personable approach.
– Consistent follow-up system.
Here are a few communication templates that can help you.
Initial Invoice Email
Subject: Invoice #[Number] for [Project Name]
Dear [Client Name],
Please find attached the invoice for [project details].
Total Amount: [Amount]
Due Date: [Date]
Kindly confirm receipt of this invoice.
Best regards,
[Your name]
—
Final Warning Template
Subject: URGENT: Outstanding Invoice #[Number]
Dear [Client Name],
Despite several attempts to confirm receipt of invoice #[Number], I haven’t received any acknowledgment on your part. This invoice was sent on [date] and is now [X] days overdue for acknowledgment.
Please confirm receipt immediately or contact me with any questions.
Best regards,
[Your name]
When to Walk Away
Sometimes, persistent invoice ghosting indicates a larger problem:
– Consider ending the client relationship.
– Document all communications.
– Review red flags for future reference.
– Update your client screening process.
Future-Proofing Your Business
- Develop Clear Policies
– Written invoice procedures.
– Response time expectations.
– Escalation protocols.
– Client communication guidelines.
- Use Workstedi for your client payment issues: Our escrow-style system means your client has to invest the TOTAL PROJECT AMOUNT into the project before the commencement of the project. This way, you’re insured in case your client stops responding and you can file a complaint to get your balance.
If you’re not sure what to do next, you can sign up here and follow through with the instructions.
- Create a Follow-Up System
– Automated reminders.
– Communication templates.
– Tracking spreadsheet.
– Response documentation.
- Build a Financial Buffer
– Emergency fund.
– Multiple income streams.
– Diverse client base.
– Clear late payment policies.
Conclusion
Unacknowledged invoices are frustrating but manageable. Remember: your time and work are valuable, and you deserve timely communication about payment (and timely payment too).
Our Tips
– Save all email communications
– Screenshot online conversations.
– Log phone calls and their outcomes.
– Keep emotion out of follow-ups.
– Document every contact attempt.
– Maintain a paper trail.
