{"id":56530,"date":"2021-06-09T16:33:47","date_gmt":"2021-06-09T08:33:47","guid":{"rendered":"https:\/\/zegal.com\/chase-late-payments\/"},"modified":"2025-01-22T13:24:20","modified_gmt":"2025-01-22T05:24:20","slug":"chase-late-payments","status":"publish","type":"page","link":"https:\/\/zegal.com\/en-nz\/use-case\/chase-late-payments\/","title":{"rendered":"Chase late payments"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 ez-toc-wrap-left counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/zegal.com\/en-nz\/use-case\/chase-late-payments\/#What_are_the_steps\" >What are the steps?&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/zegal.com\/en-nz\/use-case\/chase-late-payments\/#Introduction\" >Introduction<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/zegal.com\/en-nz\/use-case\/chase-late-payments\/#Have_Clear_Payment_Terms\" >Have Clear Payment Terms<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/zegal.com\/en-nz\/use-case\/chase-late-payments\/#How_to_do_it\" >How to do it&nbsp;<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/zegal.com\/en-nz\/use-case\/chase-late-payments\/#Step_1_Send_out_First_Payment_Reminder_Letter\" >Step 1: Send out First Payment Reminder Letter<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/zegal.com\/en-nz\/use-case\/chase-late-payments\/#Step_2_Second_Payment_Reminder_Letter\" >Step 2: Second Payment Reminder Letter&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/zegal.com\/en-nz\/use-case\/chase-late-payments\/#Step_3_Issue_the_Final_Payment_Reminder_Debt_Collection_Letter\" >Step 3: Issue the Final Payment Reminder \/ Debt Collection Letter<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/zegal.com\/en-nz\/use-case\/chase-late-payments\/#Step_5_Optional_Follow_up_with_legal_action_and_potentially_a_claim_in_court\" >Step 5: [Optional] Follow up with legal action and potentially a claim in court.<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/zegal.com\/en-nz\/use-case\/chase-late-payments\/#What_details_should_be_included_in_an_invoice\" >What details should be included in an invoice?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/zegal.com\/en-nz\/use-case\/chase-late-payments\/#Give_your_customers_regular_reminders\" >Give your customers regular reminders<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/zegal.com\/en-nz\/use-case\/chase-late-payments\/#What_if_none_of_this_helps_or_the_debt_is_much_larger\" >What if none of this helps or the debt is much larger?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/zegal.com\/en-nz\/use-case\/chase-late-payments\/#Client_case_study\" >Client case study<\/a><\/li><\/ul><\/nav><\/div>\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_steps\"><\/span>What are the steps?&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-video\"><video height=\"1080\" style=\"aspect-ratio: 1920 \/ 1080;\" width=\"1920\" autoplay loop muted poster=\"https:\/\/zegal.com\/wp-content\/uploads\/2021\/07\/chase-late-payment.jpg\" src=\"https:\/\/zegal.com\/wp-content\/uploads\/2021\/06\/Chase-late-payments.mp4\" playsinline><\/video><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-introduction\"><span class=\"ez-toc-section\" id=\"Introduction\"><\/span>Introduction<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>For smaller businesses cash is very frequently king. Because of this, late payments have an outsized impact on small companies. A few bills paid late or on extended credit terms can mean that your financial cushion is removed.&nbsp; In the worst case, it could mean not being able to pay your fixed cost (think employees and rent).&nbsp;<\/p>\n\n\n\n<p>The sad thing is, almost half of small to medium sized businesses are being paid late, with the average being \u00a332,185 in overdue payments, and nearly half of companies with bad debts are spending up to four hours a week chasing bill payers.&nbsp;<\/p>\n\n\n\n<p>That\u2019s a massive inefficiency and only aggravates a company\u2019s costs further. For the majority of these companies, it\u2019s also the same drill; phone calls (repeated conversations); and emails. With no sure outcome.<\/p>\n\n\n\n<p>On certain occasions, the exposure may be too great to write off.&nbsp; This is particularly so when a company has one or a few major clients, responsible for a large proportion of income.&nbsp; For example a consulting business with one major client like a bank, will quickly find itself in big cash trouble, if the bank decides to pay late. Sadly this happens all too frequently for consultants that consult&nbsp; for large organisations, who either by financial design, or because of lengthy internal procedures sit on unpaid invoices for too long. Use Zegal to set up an efficient and formal late payment process.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-have-clear-payment-terms\"><span class=\"ez-toc-section\" id=\"Have_Clear_Payment_Terms\"><\/span>Have Clear Payment Terms<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Make sure that your customers are clear on payment terms from the start and that there are penalties for late payment. Use contracts that are clear on this from the get-go to show that you are serious about this.<\/p>\n\n\n\n<p>If you\u2019re issuing an <a href=\"https:\/\/zegal.com\/en-nz\/invoice\/\"><strong>invoice <\/strong><\/a>or <a href=\"https:\/\/zegal.com\/en-nz\/purchase-order\/\"><strong>purchase order<\/strong><\/a>, ensure the payment terms are clearly communicated on these documents.<br>You can use Zegal to draft these documents if that is not the case:<\/p>\n\n\n\n\t<section class=\"call-to-action-buttons\">\n\t\t<div class=\"zegal-container\">\n\t\t\t\t\t\t\t\t\n\t\t\t\t<div class=\"cta-buttons\">\n\n\n\t\t\t\t\t<div class=\"cta-buttons-title-button \">\n\n\t\t\t\t\t\t\t\t\t\t\t\t\t<h5>Need to draft one now?<\/h5>\n\t\t\t\t\t\t\n\n\t\t\t\t\t\t\t\t\t\t\t\t\t<a class=\"cta-btn-link cta-btn-link-1\" href=\"#register\" >\n\t\t\t\t\t\t\t\tInvoice\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t<a class=\"cta-btn-link cta-btn-link-2\" href=\"#register\" >\n\t\t\t\t\t\t\t\tPurchase Order\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\n\t\t\t\n\t\t<\/div>\n\t<\/section>\n\n\t\n\n\n<p>If you are using a <strong><a href=\"https:\/\/zegal.com\/en-nz\/sale-of-goods-agreement\/\" class=\"ek-link\">Sales of Goods Agreement<\/a><\/strong> or a <strong><a href=\"https:\/\/zegal.com\/en-nz\/supply-of-services-agreement\/\">Supply of Services Agreement<\/a><\/strong>, ensure they contain payment term clauses.<br>You can also use Zegal to draft these documents if that is not the case:<\/p>\n\n\n\n\t<section class=\"call-to-action-buttons\">\n\t\t<div class=\"zegal-container\">\n\t\t\t\t\t\t\t\t\n\t\t\t\t<div class=\"cta-buttons\">\n\n\n\t\t\t\t\t<div class=\"cta-buttons-title-button \">\n\n\t\t\t\t\t\t\t\t\t\t\t\t\t<h5>Need to draft one now?<\/h5>\n\t\t\t\t\t\t\n\n\t\t\t\t\t\t\t\t\t\t\t\t\t<a class=\"cta-btn-link cta-btn-link-1\" href=\"#register\" >\n\t\t\t\t\t\t\t\tSale of Goods Agreement\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t<a class=\"cta-btn-link cta-btn-link-2\" href=\"#register\" >\n\t\t\t\t\t\t\t\tSupply of Services Agreement\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\n\t\t\t\n\t\t<\/div>\n\t<\/section>\n\n\t\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-to-do-it\"><span class=\"ez-toc-section\" id=\"How_to_do_it\"><\/span>How to do it&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-step-1-send-out-first-payment-reminder-letter\"><span class=\"ez-toc-section\" id=\"Step_1_Send_out_First_Payment_Reminder_Letter\"><\/span>Step 1: Send out First Payment Reminder Letter<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>To <strong><a href=\"https:\/\/zegal.com\/en-nz\/notice-of-overdue-payment\/\">inform your customers of overdue payments<\/a><\/strong>, a courteous but formal notice should be sent out as soon as an invoice or payment is past due. One that is sent out on a regular basis and using a standard process can take much of the emotions out of the collections process. This can also take the form of a <strong><a href=\"https:\/\/zegal.com\/en-nz\/first-payment-reminder-letter\/\">First Payment Reminder Letter<\/a><\/strong>.<\/p>\n\n\n\n\t<section class=\"call-to-action-buttons\">\n\t\t<div class=\"zegal-container\">\n\t\t\t\t\t\t\t\t\n\t\t\t\t<div class=\"cta-buttons\">\n\n\n\t\t\t\t\t<div class=\"cta-buttons-title-button \">\n\n\t\t\t\t\t\t\t\t\t\t\t\t\t<h5>Need to draft one now?<\/h5>\n\t\t\t\t\t\t\n\n\t\t\t\t\t\t\t\t\t\t\t\t\t<a class=\"cta-btn-link cta-btn-link-1\" href=\"#register\" >\n\t\t\t\t\t\t\t\tNotice of Overdue Payment\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t<a class=\"cta-btn-link cta-btn-link-2\" href=\"#register\" >\n\t\t\t\t\t\t\t\tFirst Payment Reminder Letter\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\n\t\t\t\n\t\t<\/div>\n\t<\/section>\n\n\t\n\n\n<h3 class=\"wp-block-heading\" id=\"h-step-2-second-payment-reminder-letter\"><span class=\"ez-toc-section\" id=\"Step_2_Second_Payment_Reminder_Letter\"><\/span>Step 2: Second Payment Reminder Letter&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><strong><a href=\"https:\/\/zegal.com\/en-nz\/second-payment-reminder-letter\/\">Debt Collection Letters<\/a><\/strong> are the first step in the debt collection process. These can be a useful and affordable way of chasing up overdue invoices by prompting a customer to pay the overdue amount.&nbsp; This is usually repeated 2 or 3 times before escalating the process.<\/p>\n\n\n\n\t<section class=\"call-to-action-buttons\">\n\t\t<div class=\"zegal-container\">\n\t\t\t\t\t\t\t\t\n\t\t\t\t<div class=\"cta-buttons\">\n\n\n\t\t\t\t\t<div class=\"cta-buttons-title-button cta-btn-layout-two\">\n\n\t\t\t\t\t\t\t\t\t\t\t\t\t<h5>Need to draft one now?<\/h5>\n\t\t\t\t\t\t\n\n\t\t\t\t\t\t\t\t\t\t\t\t\t<a class=\"cta-btn-link cta-btn-link-1\" href=\"#register\" >\n\t\t\t\t\t\t\t\tSecond Payment Reminder Letter\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\n\t\t\t\n\t\t<\/div>\n\t<\/section>\n\n\t\n\n\n<h3 class=\"wp-block-heading\" id=\"h-step-3-issue-the-final-payment-reminder-debt-collection-letter\"><span class=\"ez-toc-section\" id=\"Step_3_Issue_the_Final_Payment_Reminder_Debt_Collection_Letter\"><\/span>Step 3: Issue the Final Payment Reminder \/ Debt Collection Letter<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Escalate the situation by issuing a <strong><a href=\"https:\/\/zegal.com\/en-nz\/final-payment-reminder-letter\/\">Final Payment Reminder or Debt Collection Letter<\/a><\/strong>. At this stage, you should also send a copy of the letter by postal mail unless alternative methods of communications have been explicitly agreed. The gravity and intention of debt collection is further communicated when sent by registered mail.<\/p>\n\n\n\n\t<section class=\"call-to-action-buttons\">\n\t\t<div class=\"zegal-container\">\n\t\t\t\t\t\t\t\t\n\t\t\t\t<div class=\"cta-buttons\">\n\n\n\t\t\t\t\t<div class=\"cta-buttons-title-button cta-btn-layout-two\">\n\n\t\t\t\t\t\t\t\t\t\t\t\t\t<h5>Need to draft one now?<\/h5>\n\t\t\t\t\t\t\n\n\t\t\t\t\t\t\t\t\t\t\t\t\t<a class=\"cta-btn-link cta-btn-link-1\" href=\"#register\" >\n\t\t\t\t\t\t\t\tFinal Payment Reminder Letter\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\n\t\t\t\n\t\t<\/div>\n\t<\/section>\n\n\t\n\n\n<h5 class=\"wp-block-heading\" id=\"h-step-4-optional-consider-using-a-law-firm-to-issue-a-letter-before-action\">Step 4: [Optional] Consider using a law firm to issue a letter before action<\/h5>\n\n\n\n<p>Finally, issue a Letter Before Action as a formal notice that you intend to pursue this matter in court. This is a non-binding communication but nevertheless very effective.<\/p>\n\n\n\n<p>In addition, you may consider <strong><a href=\"https:\/\/zegal.com\/en-nz\/letter-to-instruct-lawyers-solicitors-for-outstanding-invoices\/\">instructing a law firm to issue the letter<\/a><\/strong> on your behalf as the first step towards legal action.<\/p>\n\n\n\n\t<section class=\"call-to-action-buttons\">\n\t\t<div class=\"zegal-container\">\n\t\t\t\t\t\t\t\t\n\t\t\t\t<div class=\"cta-buttons\">\n\n\n\t\t\t\t\t<div class=\"cta-buttons-title-button cta-btn-layout-two\">\n\n\t\t\t\t\t\t\t\t\t\t\t\t\t<h5>Need to draft one now?<\/h5>\n\t\t\t\t\t\t\n\n\t\t\t\t\t\t\t\t\t\t\t\t\t<a class=\"cta-btn-link cta-btn-link-1\" href=\"#register\" >\n\t\t\t\t\t\t\t\tLetter to Instruct Lawyers\/Solicitors for Outstanding Invoices\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\n\t\t\t\n\t\t<\/div>\n\t<\/section>\n\n\t\n\n\n<h3 class=\"wp-block-heading\" id=\"h-step-5-optional-follow-up-with-legal-action-and-potentially-a-claim-in-court\"><span class=\"ez-toc-section\" id=\"Step_5_Optional_Follow_up_with_legal_action_and_potentially_a_claim_in_court\"><\/span>Step 5: [Optional] Follow up with legal action and potentially a claim in court.<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>If none of the above has worked, you may need to pursue legal action and file a claim in court. Your lawyers will be able to advise the best course of action.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-details-should-be-included-in-an-invoice\"><span class=\"ez-toc-section\" id=\"What_details_should_be_included_in_an_invoice\"><\/span>What details should be included in an invoice?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Before you start chasing late invoices, you really need to be sure that you have the comprehensive basics in place. Chasing a late payment that didn\u2019t have a date on it in the first place, or because the bank account number is missing, makes your organization feel less professional at best, and at worst means you will be making enemies in your customer\u2019s accounts department.<\/p>\n\n\n\n<p>For more guidance on creating an invoice,&nbsp;<a href=\"https:\/\/zegal.com\/en-nz\/invoice\/\">please see our Invoice page<\/a>.&nbsp;<\/p>\n\n\n\n<p id=\"h-where-possible-include\"><strong>Where possible include:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Everything that matters about your business \u2013 so your company name (and trading name if that\u2019s different), your logo, registered address (and your contact address if that\u2019s not the same), and company number if you have one;<\/li>\n\n\n\n<li>Your terms of sale \u2013 if you don\u2019t have any in place just yet, you can read more about<a href=\"https:\/\/zegal.com\/use-case\/sell-b2b-products\/\">&nbsp;supplying products<\/a>&nbsp;here and&nbsp;<a href=\"https:\/\/zegal.com\/use-case\/sell-b2b-services\/\">supplying services&nbsp;<\/a>here.<\/li>\n\n\n\n<li>Full details of the product, and if applicable any goods and services tax (eg VAT) that are added on top. These must be a separate line item and clearly marked as tax.<\/li>\n\n\n\n<li>Your reference number for the product or service. This is sometimes referred to as your SKU number or Product ID. Whatever it is \u2013 make sure it is clear and either lists the quantity sold (for products) or the amount of time spent (for services).<\/li>\n\n\n\n<li>The amount due \u2013 this one is rarely missed but worth reiterating!<\/li>\n\n\n\n<li>The invoice date and number \u2013 again this is essential since this is the date from which your payment terms run. You can read more about payment terms below.&nbsp;<\/li>\n\n\n\n<li>The customer\u2019s name and address<\/li>\n\n\n\n<li>Your payment details. The most important item on your list! The easiest guaranteed way to get paid late is not to include a clear and simple method (or methods) of payment. It is by the simplest way for a business to delay paying you.<\/li>\n<\/ul>\n\n\n\n<p>If relevant, and you are charging service tax on your invoice, your tax registration number should be included on the invoice.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Give_your_customers_regular_reminders\"><\/span>Give your customers regular reminders<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Often what customers need is simply gentle reminders. You should absolutely not be sending formal or threatening letters to a customer who is a few days late, or whose credit card may have been lost.<\/p>\n\n\n\n<p>You can automate this process almost entirely these days with tools that are available to work either through your CRM (for example Hubspot does a really good job of this with its tickets functionality) or from your online payment provider \u2013 for example, Stripe and Xero have automated email reminders for failed or missed recurring payments<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_if_none_of_this_helps_or_the_debt_is_much_larger\"><\/span>What if none of this helps or the debt is much larger?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>There will be times when even with agreed contracts, a clear invoicing process, and an automated system for invoice reminders, that bills will remain outstanding and there has to come a time when enough is enough.<\/p>\n\n\n\n<p>At this point, you can use the&nbsp;<a href=\"https:\/\/zegal.com\/en-nz\/first-payment-reminder-letter\/\">Zegal late payments process<\/a>. This clearly set out process helps you send formalized payment demands to your debtors to settle their outstanding bills quickly.<\/p>\n\n\n\n<p id=\"h-you-can-think-of-this-stage-in-two-ways\"><strong>You can think of this stage in two ways:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>One is that very hopefully this change in tone will help drive home the message that it\u2019s time to pay.<\/li>\n\n\n\n<li>The second is that this formal tone is critical to have in place should subsequently need to go to formal legal action. You will be seen to have done everything possible pre-action (before the legal process) and so that will reduce the work (cost) your lawyer has to go through to begin debt collection.<\/li>\n<\/ul>\n\n\n\n<p>You can find all the resources to&nbsp;<a href=\"https:\/\/zegal.com\/en-nz\/first-payment-reminder-letter\/\">set up your formalized late payments<\/a>&nbsp;process here.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-client-case-study\"><span class=\"ez-toc-section\" id=\"Client_case_study\"><\/span>Client case study<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><em>Stella Pe from <strong>Pacifictrust Holdings<\/strong> uses Zegal to set up an efficient and formal late payment process.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>What are the steps?&nbsp; Introduction For smaller businesses cash is very frequently king. Because of this, late payments have an outsized impact on small companies. A few bills paid late or on extended credit terms can mean that your financial cushion is removed.&nbsp; In the worst case, it could mean not being able to pay [&hellip;]<\/p>\n","protected":false},"author":17,"featured_media":0,"parent":55264,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":[13559],"meta":{"_acf_changed":true,"_editorskit_title_hidden":false,"_editorskit_reading_time":0,"_editorskit_is_block_options_detached":false,"_editorskit_block_options_position":"{}","inline_featured_image":false,"footnotes":""},"usecases":[],"class_list":["post-56530","page","type-page","status-publish","hentry","template-debts-and-disputes"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v20.8 (Yoast SEO v27.3) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Chase late payments | Zegal New Zealand<\/title>\n<meta name=\"description\" content=\"What are the steps?&nbsp; Introduction For smaller businesses cash is very frequently king. 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