Invoice Status

Invoice Status - A Guide

The invoice status on CreditXS indicates where we have got to in our work to secure payment of your invoice from your customer. This guide is to explain a little about how we go about our work and what the statuses mean.

The system works for both overdue and not yet due collections.

Not Yet Due Invoice Statuses

You can also use CreditXS to help collect invoices on time. Entering the invoices before their due date means that we will send statements and reminders to the debtor to ensure the invoice is collected on time.

Registered - Debtor Notified

If you have not used the system before to collect from a debtor, then they will receive a notification that we are working on your behalf.

Statement Sent / First Reminder / Second Reminder / Final Reminder

We then send a series of reminders to the debtor asking them to let us know when they intend to pay the invoices. This is done 14, 7, 2 and 1 days before the invoice becomes due. They may respond with a Commitment to Pay, but they may also move to Copy Invoice Requested or Proof of Delivery Requested statuses - which means we have time to sort out these issues before the invoice falls due so you can get paid on time.

Overdue Invoice Statuses

Sometimes the debtor is in financial difficulty and this is why the invoices are not paid. The debtor is juggling staff salaries, payments to HMRC and payments to suppliers. If they don't need anything from you, your invoice will remain a low priority for payment. In many cases the simple fact that you have involved a third-party collection organisation like My CreditControllers is enough to escalate your invoice to the top of the pile for payment.

You cannot just jump straight to sending people round to 'doorstep' reluctant payers. There is a process that must be followed. A County Court Judgement against a debtor is required before a court enforcement officer can visit the debtor and try to recover monies or goods against the debt, and if you have not given the debtor sufficient opportunity to respond to requests for payment the court will not look favourably on your case.

Remember that it is not always the debtors fault that an invoice has not been paid. We often find that invoices have been sent to the wrong person, or are incorrect, or there is some misunderstanding between the parties that has resulted in payment being held up.

Accusations of harassment could adversely impact any future claim for a County Court Judgement, bombarding a debtor with emails, telephone calls and text messages at an unreasonable rate could undermine future court action should this be necessary.

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Our contact programme is carefully designed to take the above factors into account, to gradually and relentlessly increase the pressure on a late-paying debtor over time, while keeping the tone professional and aiming to maintain good relations between parties where possible.

Just Submitted

The process starts with a notification to the debtor that My Credit Controllers has been appointed, but without full details of the debt. There is a short holding period before the next email so that you have time to contact us if you spot that there has been an error in the data entry.

First Attempt to Contact / Second Attempt to Contact / Third Attempt to Contact

Over the next few days, there are a series of attempts to communicate with the debtor, setting out the invoices that are due for payment, plus any interest and compensation if you have chosen to add this to overdue invoices. The messages become increasingly severe in tone, added interest is held at the value when the invoice was submitted until Third Attempt, after which it rises as the days overdue ticks up. These statuses indicate that we have not yet had a response from or conversation with the debtor.

Continuing Efforts to Contact

We increase the intensity of efforts to contact the debtor by email and phone, but have not yet had a response from them or managed to speak with them.

Debtor Contacted - Follow up Scheduled

We have made contact with a debtor and they have promised to look into the issue and respond. We have agreed that we will contact them again after a short time.

Awaiting Client Feedback

We have contacted you to ask for more information or a decision in order to be able to move the case forward. Please respond quickly to ensure we can pursue your debt in a timely way.

Paid Previously

The debtor claims that they have already paid you for this invoice. We will confirm this with you.

Copy Invoice Requested / Copy Invoice Sent

Sometimes a client has not sent an invoice or sent it to the wrong place. More often, this is probably a face-saving excuse by the debtor for not having paid. However, sending a copy invoice removes the excuse and gets us closer to collecting the invoice. We ask you to send us a copy of the invoice so we can pass it on to the debtor and then agree a payment date with them.

Proof of Delivery Requested / Proof of Delivery Sent

Similar to requesting a copy invoice, sometimes a debtor will be unable to release a payment until a proof of delivery is provided.

Commitment to Pay

The debtor has indicated that they plan to pay the invoice and given us a payment date. We will conact you on this date to check that money has been received.

Proposal Awaiting Approval / Proposal Accepted

The debtor has made a proposal, for example a payment plan, or to pay only a part of the whole debt. We will communicate the offer to you for you to accept or reject.

If the debtor is in financial difficulty it can be worthwhile to accept a reasonable payment plan and recover as much of the debt as possible in case the company does go into insolvency - at least this way you have reduced your losses.

Sometimes the debtor will offer to pay only the invoice value but not the interest and compensation. Many clients will accept this to bring the whole episode to a quick resolution, but remember that our fees is a percentage of all monies collected and you will be invoiced for our work to collect what has been brought in.

Sometimes the debtor claims that there is some element of dispute on the invoice, for example they are not happy with the goods or service or claim that you have cost them money in some way. You may decide that a part payment of the invoice could be a compromise worth accepting to avoid the delays and uncertain outcome of arguing about it in court.

Paid

The debtor has paid and the case is now closed on our system.

Part Paid

The debtor has made a payment against the overdue invoice, but it has not been paid in full and we are continuing to pursue the remainder. Our fee becomes due against the proportion of the invoice that has been collected.

Payment Plan - Monthly / Weekly

A payment plan acceptable to both you and the debtor has been agreed. We continue to monitor each payment and ensure that the debtor keeps to their commitments.

Payment Not Received

The debtor promised to pay on a given date and that date has passed. Work to contact them and pursue payment continues.

Proceed to Final Demand / Final Demand Sent

If, after all our attempts to contact the debtor by email and telephone, they are still avoiding us or using delaying tactics, the next step is to send a final demand notice (a letter before action) outlining your intention to take them to County Court if they do not pay by a set deadline.

Sometimes, regrettably it does take the threat of legal action to unlock a reluctant payer.

Legal Action in Process

If the final demand is ignored, then we can assist you to take the debtor to court. At this point there are court fees for you to pay and we also will need to charge for our time. 

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