Training your team to chase invoices consistently

In many small businesses, chasing overdue invoices is a frantic, disorganised scramble. When an invoice tips into the red, it's often a case of "whoever's free" grabbing the phone or firing off a quick email. While the intention is good, this ad hoc approach is a recipe for inconsistent tone, missed follow-ups, and ultimately, delayed payments. It creates confusion for your clients and unnecessary stress for your team.

This article provides a practical framework for moving beyond chaotic chasing. We'll explore why a consistent process is crucial for your cash flow and client relationships, and walk you through how to build a clear playbook and train your team to use it. By implementing a structured system, you can turn a reactive, stressful task into a predictable and professional part of your business operations.

The Hidden Costs of 'Ad Hoc' Invoice Chasing

When there's no defined process for credit control, the task falls through the cracks. The negative impact goes far beyond just a few late payments; it can subtly undermine your business's financial health and professional reputation.

Inconsistent Tone and Damaged Client Relationships

If your bookkeeper, a sales team member, and you all chase invoices, you'll likely have three different approaches. The bookkeeper might be formal and direct, the salesperson overly friendly and apologetic, and you, the stressed founder, might be unintentionally abrupt.

This inconsistency sends mixed signals to your clients. One week they get a gentle nudge, the next a stern demand. This can appear unprofessional and, in the worst cases, damage a good client relationship. A client who feels unfairly pressured one month might be less inclined to bring you new business the next. A consistent, professional tone at every stage reinforces that you are an organised business that values both timely payment and the client relationship.

Missed Follow-ups and Delayed Payments

The "whoever's free" method has no owner. Person A sends a reminder on Monday and makes a note on a scrap of paper. Person B, unaware of this, is busy with other tasks. The promised follow-up for Friday never happens. The invoice gets forgotten for another two weeks until a cash flow crunch prompts another frantic round of chasing.

Without a clear system and ownership, follow-ups are inevitably missed. This teaches late-paying clients that your deadlines aren't firm and that they can safely push your invoice to the bottom of the pile. Consistent, predictable follow-ups, on the other hand, create a sense of professional persistence that encourages prompt payment.

Lack of Data and Process Improvement

Random chasing generates no useful data. It's impossible to spot patterns or identify areas for improvement.

• Which clients are habitually late payers?
• Is there a particular service or project type that frequently results in payment delays?
• Are your payment terms unclear?
• Is the person they need to speak to for invoice queries always unavailable?

When chasing is systematic, you start to collect this data. You can see that Client X is always 15 days late, which might prompt a conversation about changing their payment terms. You might realise invoices over a certain value are always paid slower, suggesting you should require a deposit for larger projects. Without a process, you're just fighting fires, not learning how to prevent them.

Wasted Time and Duplicated Effort

An ad hoc system is incredibly inefficient. Before making a call, a team member has to dig through sent items to see if anyone else has already emailed the client. Two people might even chase the same client on the same day, which is both embarrassing and a waste of time. This detective work—figuring out who did what and when—is time that could be spent on revenue-generating activities. A central, visible system eliminates this duplicated effort entirely.

Building Your Invoice Chasing Playbook

To fix the chaos, you need a single source of truth: a credit control playbook. This document doesn't need to be 100 pages long; a simple, clear guide that outlines the what, when, and how of your chasing process is all you need.

Step 1: Define Ownership and Responsibility

The first and most important step is to assign a single owner. This doesn't mean one person has to do all the work, but one person must be ultimately responsible for the process running smoothly. In a small company, this might be the founder, an office manager, or a bookkeeper.

The owner's responsibilities should be:

• Ensuring the chasing schedule is followed.
• Keeping the central record of communication up to date.
• Handling escalations or queries.
• Reporting on overdue debts to management.

Even if you delegate the task of sending initial reminders, one person needs to own the outcome: getting the cash in the bank.

Step 2: Create a Standard Chasing Schedule

Your schedule should be a clear timeline of actions that trigger as an invoice becomes overdue. The key is consistency. A simple, repeatable schedule is far more effective than a complex one that's hard to follow.

Here is a sample escalation path you can adapt for your business:

Stage	When	Action	Tone & Goal
Pre-emptive Reminder	3-5 days before due date	Automated or manual email.	Helpful. A gentle nudge to prevent accidental late payment.
First Overdue Reminder	1-3 days after due date	Email re-attaching the invoice.	Polite but firm. Clearly state the invoice is now overdue.
Second Overdue Reminder	7 days after due date	A firmer email and a follow-up phone call.	Professional & persistent. The goal of the call is to get a payment commitment.
Final Notice	14-21 days after due date	Formal email or letter explicitly mentioning late payment charges.	Serious. This is the final internal step before external escalation.
Escalation	30+ days after due date	Pass to a director, consider a debt collection agency, or send a Letter Before Action.	Formal. The relationship has changed; the priority is now debt recovery.

Step 3: Script Your Communication (Email & Phone)

To ensure a consistent tone, provide your team with templates. These scripts remove the guesswork and prevent overly aggressive or apologetic language. Emphasise that these are guides, not rigid scripts, and should be personalised with the client's name and invoice details.

Example Email 1: First Overdue Reminder (1-3 days late)

Subject: Overdue Invoice [#InvoiceNumber]

Hi [Client Name],

Hope you're having a good week.

This is a polite reminder that invoice [#InvoiceNumber] for £[Amount], originally sent on [Date], was due for payment on [Due Date] and is now overdue.

I've attached a copy for your convenience. Could you please let me know when we can expect to receive payment?

If you've already paid, please disregard this email.

Best regards,

[Your Name]

Example Phone Call Guide: Second Reminder (7 days late)

Goal: Get a specific date for payment.

You: "Hi [Client Name], it's [Your Name] from [Your Company]. I'm calling about invoice [#InvoiceNumber] which is now a week overdue. Did you receive the reminders we sent?"

Scenario A: "Oh, sorry, I'll pay it now." You: "Great, thank you. I'll look out for it and mark it as paid. Appreciate you sorting that quickly."

Scenario B: "I can't pay it today." You: "I understand. To update our records, can you give me a firm date when the payment will be made?" (Do not accept "soon" or "next week". Get a date.) "Okay, so I'll make a note that it will be paid on or before [Specific Date]. I will follow up with you then if it hasn't come through. Thanks."

Step 4: Document the 'What Ifs'

Your playbook should also cover common exceptions and how to handle them.

• "I never received the invoice."
  • Action: Apologise for any inconvenience, confirm their correct email address, and resend the invoice immediately while you are on the phone or in the same email chain. Ask them to confirm they have now received it.
• "There's a problem with the invoice/service." (A dispute)
  • Action: Immediately pause all payment chasing for that invoice. Acknowledge their issue politely and state that you will investigate. Pass the query to the relevant person (e.g., the project manager) to resolve. A dispute is a service issue, not a payment issue. Only resume chasing once the dispute is resolved.
• "The person who authorises payment is on holiday."
  • Action: Ask when they are due back and who, if anyone, is covering their duties. Set a calendar reminder to follow up on the day they are due to return.
• "We can only pay part of it right now."
  • Action: This is a business decision. Your playbook should state your policy. Is a part-payment acceptable? If so, agree on the amount and date for the initial payment, and a firm date for the remaining balance. Get this agreement in writing (a follow-up email).

Training Your Team: From Playbook to Practice

A playbook is useless if it sits in a folder. You need to actively train your team to adopt the new process.

The Kick-off Session

Hold a meeting with everyone who might be involved in chasing invoices. Don't just present the new rules; explain the 'why'. Show them how a consistent process helps the business's cash flow, reduces everyone's stress, and maintains better client relationships. Frame it as a positive step towards being a more professional and organised company.

Role-playing Scenarios

The most effective training technique for credit control is role-playing. It feels awkward at first, but it's invaluable for building confidence. Pair team members up and have them practice the phone call scripts. Give them challenging scenarios to work through:

• An angry client who feels they're being harassed.
• A friendly client who keeps making and breaking promises.
• A client with a genuine and complex dispute about the work delivered.

This practice helps your team learn how to stay calm, stick to the process, and de-escalate difficult conversations.

Using a Central System

Ad hoc chasing thrives in informational silos like personal email inboxes and sticky notes. A core part of your new process must be a single, central place where all chasing activity is logged.

This could be as simple as a shared spreadsheet, but it must be kept up to date religiousy. A better approach is to use the tools you already have. Your accounting software (like Xero, QuickBooks, or FreeAgent) has note-keeping functionalities where you can log every call and email against the relevant invoice. For true consistency, dedicated credit control platforms like InvoiceReminder can provide a fully automated and error-proof system, ensuring the playbook is followed perfectly every time.

Knowing When to Escalate (The UK Legal Framework)

Your internal process will work for most clients. But for the small minority who still won't pay, you need a clear escalation path that is backed by UK law. For business-to-business (B2B) debts, this is primarily governed by the Late Payment of Commercial Debts (Interest) Act 1998.

Your team should be aware of these rights, not necessarily to threaten clients on day one, but to understand the tools at your disposal for serious non-payment.

Statutory Interest: For most UK B2B invoices, if your contract doesn't specify a different (and substantial) late payment interest rate, you can apply "statutory interest". This is calculated as 8% plus the Bank of England's base rate. The base rate can change, so you should always check the current rate on the Bank of England's website when calculating it.

Fixed Compensation: In addition to interest, you are entitled to claim a fixed sum as compensation for the cost of chasing the debt. The amount depends on the size of the invoice:

• £40 for debts up to £999.99
• £70 for debts between £1,000 and £9,999.99
• £100 for debts of £10,000 or more

Letter Before Action (LBA): Before you begin legal proceedings or instruct a debt collection agency, you should send a final, formal communication known as a Letter Before Action. This letter formally states the total amount owed (including any interest and compensation you've added), sets a final deadline (e.g., 7 or 14 days), and states the consequences of non-payment (e.g., "we will instruct our solicitors to commence legal proceedings"). This formal step is often enough to prompt payment from even the most stubborn debtors.

Disclaimer: This is general guidance, not legal advice. Your specific contract terms may vary, and you should consult a legal professional for advice on your situation.

The Ultimate Consistency: Automation

Even with the best playbook and training, manual credit control is vulnerable to human limitations. People get busy, go on holiday, or simply forget. The invoices that need chasing most urgently are often the ones that get pushed back when a more pressing operational fire needs fighting.

This is where automation provides the ultimate form of consistency. Software can execute your playbook perfectly, without fail.

• Perfect Consistency: An automated system sends the exact, pre-approved email template for each stage of the chasing schedule, every single time. The tone is always right.
• Guaranteed Follow-ups: The system never forgets. If a reminder is due on day 7, it goes out on day 7. There are no gaps caused by holidays or busy periods.
• Frees Up Your Team: Automation handles the 80% of repetitive chasing for invoices that are just slightly late. This frees your team to focus on the 20% that really need a human touch: resolving disputes, negotiating payment plans, and making strategic phone calls to key accounts.

By automating the repetitive work, you ensure your process is followed without exception, improving cash flow and freeing up valuable human time.

---

Creating a manual playbook and training your team is a huge step forward from ad hoc chasing. When you are ready to make that process effortless and entirely consistent, InvoiceReminder can help. It connects to your Xero, QuickBooks, Sage, or FreeAgent account and automates the entire chasing schedule you've designed, sending polite, persistent reminders on your behalf. This frees up your team from manual follow-ups so they can focus on what they do best. The core email reminder features are currently available at no cost.

Frequently asked questions

How firm should we be when chasing invoices?

Your approach should escalate gradually. Start with a friendly, helpful reminder before the due date. Once overdue, your tone should become more professional and firm with each follow-up. The goal is to get paid while preserving the client relationship for as long as possible, only becoming truly formal and serious when the debt is significantly aged.

Can I legally charge interest on late payments in the UK?

Yes, for most business-to-business transactions, the Late Payment of Commercial Debts (Interest) Act 1998 allows you to charge statutory interest on overdue invoices. This is calculated at 8% plus the current Bank of England base rate. You can also claim a fixed compensation sum of £40-£100 depending on the debt size.

What's the most important part of a credit control process?

Consistency. A simple process that is followed every single time is far more effective than a sophisticated one that is only used sporadically. Consistency trains your clients that you are organised and that your payment terms are not optional, which encourages more prompt payment in the future.

What should I do if a client disputes the invoice?

Pause all payment chasing for that invoice immediately. Acknowledging their concern and stopping the reminders shows you are taking them seriously. The issue is now a service or operational query, not a credit control problem. Log the dispute and pass it to the right person to investigate and resolve the underlying issue.

Should I use email or phone calls for chasing?

Use both. Email is excellent for creating a documented "paper trail" of your communications and for sending initial, low-touch reminders. A phone call is much harder to ignore and is more effective for cutting through the noise, understanding the reason for the delay, and securing a firm commitment for payment. A good process uses email for the early stages and adds phone calls as the debt ages.

At what point should I use a debt collection agency?

You should only consider a debt collection agency after your full internal chasing process has been exhausted and failed. This typically means you've sent multiple reminders, made phone calls, and sent a formal final notice or "Letter Before Action" over a period of 60-90 days. You must also weigh the agency's fees against the size of the debt to ensure it is commercially viable.