Final answer:
A direct answer would be to send a reminder notice or a past due letter to customers with overdue payments. The notice should clearly state the late fee and the accumulating daily charge to prompt immediate action.
Step-by-step explanation:
You should send a reminder notice or past due letter to customers whose payment is past due. This notice should inform them of the accrued late fee and the daily charges that are adding up due to the delayed payment.
For instance, if a credit card company has a policy of charging $10 as a late fee and then $5 each day the payment is overdue, it is crucial to communicate this clearly to the customer. This will not only remind them of their obligation but also illustrate the urgency of settling their debt promptly to avoid further charges. Sending a timely reminder can help foster good customer relations while also ensuring that the business's cash flow is not unduly disrupted by late payments.
By sending a payment reminder, businesses can improve their cash flow and maintain healthy customer relationships. It also serves as a professional and courteous way to remind customers of their payment obligations.