Late Payments Protocol

Escalation steps in case case of overdue customer invoices.

7th day overdue
- HoF: quick check with PM whether everything is fine on the project, and if so then send a friendly email to the customer reminding them that the invoice is unpaid and asking them to pay it ASAP.
14th day
- HoF: notify PM and HoP that invoice is 14 days overdue.
- PM: Send friendly email to the customer saying that they heard from our finance team that the invoice is outstanding, and whether they have any open questions or if there is something wrong with the bill.
- HoP: optionally use one of the dunning options, if warranted.
30th day
- HoF: Notify PM, HoP, CRO and CEO that invoice still isn't paid.
- PM: Call and email the customer saying that our invoice is over a month overdue and that we will need to stop the project unless invoices are paid within the next 7 days. Important: both a call and email, the call first to give the customer a chance to give a legit reason (maybe we fucked up?), and a followup email to have it in writing. HoP, HoF, CRO and CEO are on CC to this email.
- HoP: optionally use one of the dunning options, if warranted.
37th day
- HoP: email to the customer that we have to stop work until the open invoices are cleared up.
- HoP: notify CEO, CRO and HoP
- HoP: optionally use one of the dunning options, if warranted.
45th day
- Management: makes decision on how to proceed. Generally the escalation steps are: "you have to pay us” campaign including dunning letters, followed by threat of legal action, followed by actual legal action

HoF: Dunning letter 1 to customer via email. Asking for payment within next 7 days, or that we will be forced to charge interest and late payment fees.
HoF: Dunning letter 2. Strongly worded. Already includes late payment fees and interest.
HoF: send out a demand letter to customer via email, with HoP, PM and CEO in CC

9Y Playbook