The Collections Timeline

The first two weeks

The opening fortnight is where most accounts are resolved, so move early. A friendly reminder a day or two after the due date catches simple oversights without friction. If there is no response or payment by day seven, send a firmer follow-up that states the account is now well overdue and requests payment by a specific date. Acting promptly signals that you track your ledger closely and that late payment will not simply be absorbed. The longer the first contact is delayed, the more an overdue invoice slides down the customer's own list of priorities.

Two to four weeks

If reminders have not worked, shift from notices to conversation. A phone call around the two-week mark adds urgency that email cannot, and it forces a real answer about when and how payment will arrive. Get a specific commitment and confirm it in writing. If a customer raises a dispute, isolate and resolve it now rather than letting it become a reason to stall the whole balance. By the end of week four, you should know whether you are dealing with an oversight, a cash-flow problem, or avoidance — and that tells you what comes next.

The letter of demand

When friendly and firm reminders are exhausted, a formal letter of demand marks the shift to a serious footing. It restates the debt, sets a final deadline, and makes clear that the account will be escalated if unpaid. A clear demand often prompts payment on its own because it signals you are prepared to act. It should remain professional and factual — never threatening — and it draws a definite line between informal follow-up and formal recovery. Treat it as the last in-house step, not an idle warning you are unwilling to back.

Escalation

Time is the single biggest factor in whether a debt is recovered: collectability falls sharply as an account ages, so the window between thirty and ninety days is decisive. If a letter of demand passes without resolution, internal chasing has run its course, and persisting with it mostly ties up your team while the odds quietly worsen. A commission-only agency adds professional pressure, recovery experience, and useful distance from the relationship — and because you only pay when they collect, escalating carries no upfront cost. The point of a timeline is to reach this decision deliberately rather than by exhaustion. When in-house steps stall, refer a debt rather than letting another month erode your chances.