Overdue Payments Policy

Timely payment is essential for maintaining a healthy business relationship. This policy outlines the procedures we follow when an invoice is not paid by its due date, the actions we may take to collect overdue amounts, and the rights and responsibilities of both parties.

1. Scope

This policy applies to all customers, clients, and partners who receive invoices from XYZ Solutions Ltd. It covers invoices for goods, services, subscriptions, and any other chargeable activity agreed upon in a contract or purchase order.

2. Definition of Overdue

An invoice is considered overdue when the payment is not received by the date specified on the invoice (the Due Date). The standard payment term is Net 30 days unless otherwise agreed in writing.

3. Notification Process

1. Reminder #1 5 days after due date: An automated friendly reminder is sent by email.
2. Reminder #2 10 days after due date: A second reminder is sent, reiterating the amount due and the overdue status.
3. Reminder #3 15 days after due date: A final reminder is issued, warning that further action may be taken if payment is not received within the next 5 days.
4. Phone Call 20 days after due date: Our accounts team contacts the client by phone to discuss any issues preventing payment.

4. Late Payment Interest

Unless otherwise stipulated in the contract, interest will be charged on overdue amounts at a rate of 1.5% per month (or the maximum rate permitted by law, whichever is lower). Interest is calculated from the day after the due date until the day payment is received.

5. Suspension of Services

If an invoice remains unpaid after 30 days from the due date, we reserve the right to:

• Suspend delivery of goods or services.
• Restrict access to online platforms, accounts, or digital resources.
• Place a hold on any future orders until the outstanding balance is settled.

6. Collection Procedures

Should an account become seriously delinquent (60 days past due), the following steps may be taken:

1. Formal written demand for payment sent via registered mail.
2. Engagement of a thirdparty collection agency.
3. Initiation of legal proceedings to recover the debt, including court costs and attorney fees.

All collection costs will be added to the amount owed.

7. Dispute Resolution

If a client believes an invoice is incorrect, they must notify us in writing within 10 days of the invoice date. The notice should include:

• Invoice number and date.
• Specific details of the dispute.
• Supporting documentation.

We will review the claim and respond within 5 business days. While a dispute is being resolved, the undisputed portion of the invoice remains payable according to the original terms.

8. Payment Methods

We accept the following payment methods:

• Bank transfer (details on the invoice).
• Credit/Debit card via secure online portal.
• PayPal.
• Cheque (payable to XYZ Solutions Ltd.).

All payments are to be made in the currency specified on the invoice.

9. Waiver and Modification

No waiver of any provision of this policy will be effective unless it is in writing and signed by an authorized representative of XYZ Solutions Ltd. We reserve the right to modify this policy at any time; any changes will be communicated to clients in writing.

10. Contact Information

For questions about this policy or a specific invoice, please contact our Accounts Department:

• Email: accounts@xyzsolutions.com
• Phone: +1 (555) 1234567
• Address: 123 Business Lane, Suite 200, Metropolis, NY 10001

We appreciate your prompt attention to this policy and look forward to continued cooperation.