Adding late fees to overdue invoices is an effective way to get paid faster. But keeping track of how much each customer owes can be tricky. Especially as fees accumulate. With Satago, you can add late fees to your automated payment reminders at the touch of a button. The platform will calculate each customer’s fees and add them to your reminder emails on an ongoing basis.
Here’s how to add late fees to your payment reminders in Satago.
1) Visit the Credit Control section of the Satago platform and click on ‘Templates’.
2) Click on your second reminder template. This is the first email that your customer will receive after their invoice becomes overdue.
3) Go into the email template and add this paragraph:
In line with our payment policies, you will be charged a daily fee until this invoice is paid.
Late fees to pay:
4) Then go to ‘Snippets’ and select ‘Late fees’ to add the sum of the fees to your email.
5) Repeat this process with your third, fourth and fifth reminder email templates. So that each email after the invoice due date includes late fees.
6) Remember, if you don't want certain customers to receive these emails, you can switch off payment reminders and adjust your sending schedule on a customer level. Visit ‘Accounts’ then ‘Customers’ to switch reminders on and off for each customer.
For best results, tell your customers in advance that overdue invoices will be subject to late fees. You can add this information to the bottom of your invoices and include it in your payment contracts.
Often, even the threat of late fees can encourage customers to pay on time. So, it's a good idea to remind customers of your late fee policy in your first email, sent three days before the invoice is due.
Putting a solid late fee policy in place will help you tackle your aged debt and put you on track for improving your cash flow.