On average, 14.7 percent of B2B receivables are overdue and the days sales outstanding (DSO) average has increased from 39.7 days to 42.6 days for B2B businesses in 20201. One of the biggest reasons for overdue payments is that companies fail to follow up with customers in a timely manner. Unfortunately, a lot of companies struggle to find the time to send out payment reminders for the volume of invoices that they generate.
The easiest way for companies to follow up on payments is by simply automating the sending of payment reminders. Our PayFabric service provides companies with many tools to help automate manual collections processes, such as the ability to email payment reminders to customers. Below are three key ways that PayFabric can help you proactively send out payment reminders for your outstanding invoices.
1. Schedule automatic email reminders
PayFabric allows users to schedule out reminders for their invoices. You can choose when the email reminder is sent based on how long the invoice has been available. Once you set the schedule, the system will automatically send out the reminders to the customers.
2. Customize your reminder
Our easy-to-use email template editor enables you to customize the reminder to suit your business needs. Many options are available such as including an attachment of the invoice or including secure links to enable your customer to make an immediate payment or to login to your branded customer portal where they can pay invoices, access their account history or sign up for automatic payments.
3. Create multiple reminders
Some of your customers may need more than one reminder to remember to make their payment. With PayFabric, you can create many templates with different messaging and schedule them to send out at different times. For example, you may want to provide different messaging for an invoice that is due in 15 days versus an invoice that is 15 days past due.
Among businesses with about 10% of overdue receivables, 56.5% consider one of the key problems to be manual processes2. By using PayFabric, your company can automate processes related to sending manual payment reminders and improve the overall efficiency of your accounts receivables department.
To learn more about payment reminders or any other feature of PayFabric, contact us today at email@example.com or 909-482-4701.