Guide ✦ Debtor follow-up

How to hand over
debtor follow-up

Most businesses have no follow-up cadence at all — they chase when cash is tight. A dedicated person with a schedule pulls cash forward within a month, and it is the least glamorous win available.

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Ask a business owner what their debtor days are and you often get an estimate. Ask what happens on day thirty-one and you usually get a description of a feeling rather than a process.

That is the actual problem. Chasing is emotionally uncomfortable, so it happens inconsistently — hard when cash is tight, not at all when it is not. Inconsistent chasing teaches customers that your terms are negotiable.

A dedicated person removes the emotion. The follow-up happens on day one past terms because that is the schedule, not because anyone is annoyed. Customers respond to consistency far more than to firmness.

Before you read on

Who this is for

Worth your time if

  • You chase invoices when cash gets tight rather than on a schedule
  • You do not know your current debtor days
  • Some customers routinely pay at sixty days on thirty-day terms
  • Chasing is done by the person who also owns the relationship

Probably not if

  • Your invoices go out late or inaccurately — fix that first
  • You have no written terms
  • You want someone to make credit or write-off decisions
  • You are unwilling to escalate when the schedule says to
The work

What a follow-up cadence actually involves

All of it scripted and scheduled. None of it requires judgement about the relationship.

Invoice delivery confirmation

Confirming the invoice actually arrived and reached the right person — a surprising share of late payment is an invoice sitting in the wrong inbox.

Pre-due reminder

A short reminder a few days before due date. The cheapest intervention available and the least confrontational.

Day-one follow-up

Contact on the first day past terms, every time, to your script. Consistency here does most of the work.

Escalating cadence

A defined sequence — day 1, day 7, day 14, day 21 — with the tone stepping up on schedule rather than on mood.

Statement runs

Regular statements so nobody can claim they did not know what was outstanding.

Promise tracking

When a customer commits to a date, it is recorded and followed up on that date rather than forgotten.

Dispute identification

Invoices that are unpaid because something is wrong, separated from invoices that are simply late — a distinction most businesses never make.

Debtor reporting

Ageing, debtor days, promises outstanding and disputes, weekly, so you can see the trend rather than the feeling.

What stays with you

The chasing travels. Every decision about money and relationships stays with you.

  • Credit decisionsWhether to extend credit, put an account on hold or stop supply is yours.
  • Write-offs and settlementsAccepting less than the invoice is a commercial decision, never delegated.
  • Legal escalationDebt collection agencies, letters of demand and legal action are your call and your instruction.
  • Relationship judgementWhen a customer is genuinely struggling and the answer is a payment plan rather than pressure, that is yours to decide — they flag it.
From the handovers we run

How to set it up

The cadence is the whole design. Get that right and the person is executing, not deciding.

1

Write the cadence down, with the words

Not "follow up regularly". The actual schedule and the actual wording at each step, including the one where the tone changes. This is an one-hour job and it is the entire handover.

2

Set your thresholds and escalation points

At what age and what value does it come to you? Who gets a phone call rather than an email? What is the point at which supply stops? Decide once, in advance, so nobody is deciding in the moment.

3

Start with the aged debt, not the current ledger

Point them at everything past sixty days first. It is finite, it produces cash quickly, and it teaches them your customers.

4

Then run the standing cadence

Pre-due reminders and day-one follow-up on everything, every cycle. This is where debtor days actually move.

5

Review the weekly report and adjust

Debtor days, promises kept, disputes found. Adjust the cadence based on what the data shows rather than on how the calls felt.

The mistake that costs a fortnight

Chasing invoices that were never going to be paid as issued

A large share of "late" invoices are not late — they are disputed, and nobody has noticed. Wrong amount, wrong PO reference, work the customer believes was not completed, an invoice that never reached accounts payable. If your follow-up process treats all of these as reluctance to pay, you get an escalating sequence of increasingly firm reminders aimed at a customer who is waiting for you to fix something. That damages relationships and recovers nothing. Build the split into the process from day one: the first contact establishes whether the invoice is agreed and simply unpaid, or whether something is wrong. Agreed-and-unpaid goes into the escalating cadence. Anything else comes to you as a dispute, immediately, because that is a different problem with a different owner.

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Questions

Frequently asked

Will customers react badly to being chased by someone offshore?
What customers react badly to is inconsistency and surprise. A polite, accurate, scheduled follow-up from a named person with your business email address works — and it works better than a business owner chasing sporadically, because there is no emotional charge in it.
Should they call or email?
Both, on a schedule. Email is the record; a phone call is what actually moves a payment that has been ignored twice. Set which step is which in the cadence rather than leaving it to preference.
How quickly do debtor days actually move?
Usually within the first month, and the biggest single contributor is the pre-due reminder plus consistent day-one contact. Measure your current debtor days before you start so you can see it rather than assume it.
Can the same person do invoicing and chasing?
Yes, and it works well because they know what was invoiced and why. Keep credit decisions, write-offs and legal escalation with you — that is the separation that matters, not the invoicing.
Is there a minimum term?
Three months, then month to month. It's the same runway you'd give a new local hire to learn your systems, your clients and your standards — and the team members who get a fair run are the ones who stay for years. There are no exit penalties at any point, and if the issue is the person rather than the role, the first-week refund and free replacement cover that separately.
How do you handle confidentiality?
The same way you'd treat any remote team member. Every placement signs an NDA and a confidentiality clause before day one, and they work inside your systems — your email, your CRM, your file storage — so you control what they can see and can revoke access instantly. No client data is stored on our side.