Payment Due Dates and Reminder Bills
At Interbill we consider a client’s payment to be overdue when the client has not paid by the payment due date printed on the client’s statement.
We strongly recommend that attorneys send a reminder bill for each overdue statement within 3 days after the payment due date.
The best reminder bills include the last bill along with a first page that says this bill is overdue. You can also include messaging such as, “if you have difficulties paying this bill please contact our office at once to arrange a different payment plan.”
The main purpose of a reminder bill is to let the client know the law practice is serious about billing and getting paid, and that the attorney has a system in place to track overdue payments. The result of this will be better collections.
Reminder bills should not be harsh. They should communicate two things. The client has not made the agreed upon payment and if the client cannot pay, the office can tailor a payment plan to fit their financial realities.
Payment Plans in Writing
Payment plans should be in writing. As a famous businessman someplace must have said – “if it is not in writing it does not exist”.
Clients often tend to be overly optimistic about their ability to pay. For instance, if you have a client that you want to set up on an “installment retainer “ it may be best to set that installment at a lower amount than the client says they will be able to afford. And, as with any type of payment plan, make sure to have it in writing and summarize the plan on the statement.
Billing Payment Plans
It is important to “bill” payment plans. Most are monthly although some attorneys bill smaller amounts but bill them twice a month. Do not leave it up to the client to remember to pay. Each payment plan bill should have a payment due date and be treated just like any other bill.
We recommend summarizing the payment agreement and the date of that agreement on each statement. Clients have a tendency to forget exact payment arrangements. Summarizing those arrangements on every sent statement is a good reminder.
Interbill has created a number of automated payment plans all of which print summarized payment terms on statements. Interbill uses payment due dates and has automated reminder billing. For more information, please give us a call at 800.733.9933 or email: info@interbill.com.
End
