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Get Timely Payments with Skydo's Automated Payment Reminders

Receive Timely Payments with Skydo's Automated Reminder Feature
sukanya
Sukanya19 December 2023

"Should I send a payment reminder to the client? It's been 10-15 days past the invoice due date, and the client is yet to process the payment.” This dilemma is not uncommon. But here's what you should know. 

According to Chaser's Delayed Payment Report 2022, around 87% of businesses receive payments after the invoice due date. However, 90% of businesses that follow up on their invoices receive payments within a week.

Yet, once you decide to send a payment reminder, more questions follow - "How to send a polite payment reminder to the client?" "When to send a payment reminder to the customer?" If you have been stressing too much over the pending invoices, you need to have a payment reminder system/process in place.

Instead of writing a follow-up email or text directly and being unsure whether the client has received the reminder, there's a better way to sort this out with Skydo's payment platform. 

Let's understand the challenges of late payments further, explore the benefits of sending automated payment reminders with Skydo, and how you can use this payment system to optimise your business activities.

The Causes and Challenges of Late Payments

According to the Delayed Payments Report, the major cause of payment delays is the power gap between small sellers and large buyers. This often forces suppliers to agree to more than 45 days of payment cycle. Insufficient funds with the buyers and delays in submitting invoices are the two other significant reasons causing delays. 

Interestingly, often there is no particular reason for the delay in payments other than business culture. Clients are unbothered if the payment gets delayed. However, your company may hesitate to chase the payments to protect the relationship with the client. Sending automated payment reminders is one of the best ways to manage such situations as it seems less hostile.

Now even if you decide to send payment reminders, there is another series of challenges like the inability to chase payments because of lack of time and resources and tracking invoice due dates. This is primarily why automated payment reminders are necessary for businesses to overcome the following challenges caused by delayed payments.

  • Cash flow disruption, making it difficult for businesses to manage their operations
  • Difficulty in maintaining inventory
  • Strained business relationships between buyer and supplier, leading to loss of business
  • Lack of growth and innovation
  • High cost of borrowing

Let Skydo Handle Your Collections

A study on nudging for debt collection tells that debtors do not necessarily delay payments because of lack of liquidity or intentionally. Surprisingly, there is a behavioural approach to delay payments. Lack of attention and a tendency to procrastinate is what causes delay. However, people are receptive to simple and polite payment reminders.

Therefore, one of the best ways to make your payment system smooth is to use an automated invoice management and account receivables platform like Skydo that sends quick and polite payment reminders to the client within a few seconds. 

According to the B2B Payments Innovation Readiness Report, businesses with a manual account receivables process are likely to experience a 30% delay in receiving payments compared to organisations that have an automated process to receive payments.

Hence, the following are the key features and benefits of using Skydo for payment reminders.

1. Sending payment reminders in one click

With Skydo, you do not have to worry about writing, scheduling and tracking payment reminder emails. You can click “Send a Reminder” by opening an unpaid invoice on the dashboard, previewing the reminder email and sending it to the client with minimum manual effort.

Sending payment reminders in one click

2. Check if your client has seen your reminders

Often, when you send reminder emails to clients, you cannot determine whether they have received or read them. With Skydo, A bonus with sending reminders through Skydo is the ability to track its status. 

You can view when the client has opened the reminder. It allows you to plan your reminder emails accordingly and take appropriate action in case a payment is overdue for a long time.

Check if your client has seen your reminders

3. Track your reminder history

Skydo provides a comprehensive overview of all the reminder emails sent to a client and when the emails were viewed. This feature is beneficial in case a client fails to pay the invoice or a client disputes the invoice after sending multiple reminder emails.

Beyond ensuring timely payments, this and various other features on the dashboard help accelerate business growth. Here’s how.

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