Payment Hub

Better Billing Process for Past-Due Invoices

Published  |  6 min read

Faster Payments, Better Customer Service

Managing the billing process and ensuring timely payments from clients can often become an uphill battle to collect on past-due invoices. This problem is ubiquitous and impacts businesses of all scales and sectors. Past-due or delayed payments can adversely affect the customer relationship and a company's cash flow, hampering its ability to grow and make the business operate smoothly.

Improve time to payment for past-due invoice and past-due accounts.

Avoiding the Past-Due Invoice

Timely client payments are not just about maintaining a healthy cash flow. They can play a vital role in strengthening business relationships, instilling trust, and fostering long-term collaboration. This helps the financial well-being of your business and the long-term client relationships you're striving to foster.

Unfortunately, the reality of busy clients forgetting to pay their own overdue invoices, late payments, or paying only when convenient is a common issue businesses grapple with daily. To make matters worse, you get to become "the bad guy" and send a past-due invoice email to notify them of late payments, late fees, and past-due payment terms, all to help ensure that they keep their account in good standing.

The solution lies in reducing the number of times a past-due invoice needs to be sent. This is easier said than done, but there's a solution.

Challenges in Billing and Collecting on Past-Due Invoices

In the traditional billing process, the customer might have queries about their invoice due date or outstanding invoice balance but could be too occupied to reach out and clarify. Making phone calls, leaving an urgent message, and dealing with being placed on hold, and tracking down the right person is time-consuming and wasteful. Clients avoid this at all costs, and if that means avoiding a past-due invoice, they might just take that path.

This leads to payment delays and an increased amount of outstanding receivables, posing significant challenges for your business. An efficient billing process in a timely manner proactively addresses these issues. Making the process painless and facilitating customer self-service can help get your money and, in some cases, avoid legal action.

Why Traditional Billing Methods Result in Unpaid Invoices

Traditional billing methods, while familiar, often lack the transparency and efficiency required to maintain healthy customer relationships. They do not offer customers overdue notices, formal notice of legal action, automatic reminders, due notices, overdue balances, invoice due dates, and the convenience of paying their bills at their own pace and time.

Businesses need to update their business workflows and web portals, and not rely on the traditional collections agency to remedy their past-due invoices.

Friendly payment reminder email for a past-due invoice and response confirming payment.

The Need for a Streamlined Billing Process

A streamlined, automated invoice billing process can transform the way businesses handle their receivables. It reduces manual efforts, errors, and the time taken to get the invoices paid, significantly improving the business's cash flow and financial health.

A streamlined process should include the ability to proactively send customers an invoice email with a payment reminder for invoice due dates, past-due invoices, late payments, late fees, outstanding invoices, payment terms, and payment options, just to name a few. This is where Clarity Payment Hub steps in, to provide all of this and much more.

The Latest in Payment Hub Tech

Enter Clarity Payment Hub, a solution that centralizes and automates your billing process. From accounting to invoice creation, response confirming invoice total payment amount, providing a client payment portal, and ensuring final payment, Clarity Payment Hub takes care of it all. It's a one-stop solution for all your billing woes.

How Invoicing and Payment Hubs Work

From Accounting to Invoice

Our Payment Hub integrates with your accounting software and ERP, pulls the necessary data, and generates invoices and client notifications. It also takes payments and sends each applicable client a past-due invoice. This eliminates any chances of error and enhances efficiency. It fully automates the generation, notification, and payment of invoices between your back-office application (ERP or accounting software) and the client payment portal.

Automate Invoicing Processes

Automated invoice reminders for past-due notifications, including invoice email, are a few of the many benefits of Clarity Payment Hub.

Client Payment Portal: Providing Convenience

Our solution offers a customer-facing and easy-to-use invoicing software portal. This gives your clients the power to view, print, and pay their invoices easily, without you having to make a call or send an invoice email. It's fully self-service, allowing clients full visibility into their past and present invoices, show consolidated payment of outstanding invoices, create automated reminders, view transactions posted back to your software applications, and much more.

Seamless Integration with ERP or Accounting Software

The solution, using our Clarity Connect integration platform, integrates perfectly with your company name existing ERP or accounting software, ensuring that the full payment and processing is automated, and payments are posted back to your system without any manual intervention. This platform can be used to integrate any of your applications, such as CRM, ERP, EMR, PIM, warehouse or inventory management solutions, supply chain vendors, and much more.

The Power of Proactive Notifications

Clarity Payment Hub doesn't just wait for the customers to remember their pending invoices. It proactively sends notifications to request payment, a reminder invoice email about past-due invoice dates and any outstanding invoices, which encourages timely action. The initial and past-due invoice email template can be customized to include the company name, invoice number, due date, past-due invoice amount, late payment fees or late payment amount, final notice, any legal action that's impending, or a simple response confirming all transactions related to the outstanding invoice.

Facilitating Self-Service: Empowering Your Clients

Our platform empowers your clients by offering them the opportunity to self-serve any past-due invoice. They can clarify any doubts or queries about the invoice, outstanding invoices, due date, and late payments. They get full visibility into past and present invoices and can pay any past-due invoice within seconds, shortening the time to payment.

Efficient Invoicing Solution

Get a fully automated client billing and invoicing solution from Clarity Payment Hub.

Benefits of Implementing Clarity Payment Hub

Automate reminders to prevent an overdue balance or late payment.

Speedy Payments: A Major Turnaround

Our clients typically witness a 43% reduction in the time to payment after implementing our Pay Hub solution. This remarkable turnaround significantly improves the client's attention to their due date, immediate payment, and the overall financial health of the client relationship.

Reduction in Accounts Receivable Outstanding

By keeping the clients informed and proactive about payment terms, due date, anything past-due, and unpaid invoice, the Payments Hub drastically reduces the number of days overdue and the balance of outstanding receivables, further strengthening the company's financial position.

Real-Life Success Stories

Consider a mid-sized IT services company. They had many clients and struggled with maintaining a steady cash flow due to delayed payments overdue accounts. After implementing Clarity Payment Hub, they noticed an astonishing reduction in their payment cycles and outstanding receivables. The automated, self-serve approach took the burden off their accounts team and led to happier, more satisfied clients, without damaging the relationships they have with their clients.

Working with the Right Team

Clarity Payment Hub brings a revolution in your client owes billing process by making it centralized, automated, and client-friendly. The proactive approach of the platform reduces the payment time and the number of outstanding payment receivables, drastically improving the business's cash flow. With its Customer Payment portal, it provides complete visibility for your clients into their invoices, including invoice reminders, anything past-due, past and present invoices, and transaction history, as well as all the proactive and a friendly invoice email.

Along with the Customer Portal comes a Virtual Terminal, which allows your team the ability to emulate or log in as any client and process a past-due invoice, refund, credit card update, membership renewal, and much more.

 

Transforming Your Billing Process with Clarity

By embracing a solution like Clarity Payment Hub, businesses can transform their billing overdue payment process into a strategic asset rather than a chore with a bunch of past-due invoices. It's time to say goodbye to forgotten and late invoices due, late fees, delayed payments, and a constant chase for receivables. Adopt a better billing process, get faster client payments, send a past-due invoice as necessary, and take your business to new heights.

We offer a complimentary discovery process, so get in touch. We'll help you create a map for implementing whatever payment hub you choose.

FAQ

 

A payment hub is a centralized solution that automates the entire invoicing and bill collect payment process, from generating invoices to the collections agency and invoice email facilitating customer payments. It integrates with any ERP and any payment gateway for payment processing.

 

A payment hub reduces payment time by proactively notifying customers about their next outstanding balance, invoices, and payment options and allowing them a self-serve payment method that encourages timely payments, consolidated invoice payments, and more. Payments are processed directly into your integrated ERP or accounting software.

 

Yes, a payment hub seamlessly integrates with your existing ERP or accounting software, automating the process of posting payments back to your system. Clarity has completed more than 4,000 integrations with its Connect integration platform.

 

Clarity Payment Hub can significantly improve your business's cash flow by automating the generation and notification of invoices to your clients and providing them with a self-service Customer Payment portal, which enables and entices faster and more efficient invoice payments. Automatic notifications for overdue payments, late invoice payments reminders upcoming payments, and more reduce the time to the due date for payment of unpaid invoices and the number of outstanding receivables.

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Stephen Beer is a Content Writer at Clarity Ventures and has written about various tech industries for nearly a decade. He is determined to demystify HIPAA, integration, enterpise SEO, and eCommerce with easy-to-read, easy-to-understand articles to help businesses make the best decisions.