How to collect from a late payer and keep the customer.

How do you collect from a late-paying customer?

Most late payments at a small business come from forgetting or a short-term cash squeeze. That is why collection works best as a sequence of contacts, each one a little firmer than the last:

1. Two or three days before the due date: a reminder with the amount, the date and how to pay.
2. On the due date: a short notice with the payment link or Pix key.
3. One to three days later: a polite message asking whether something went wrong.
4. A week later: a call or message offering a new date or installments.
5. No answer: a formal letter and a talk with your lawyer or accountant about next steps.

Write the deadlines and messages once and always use the same ones. That way collection no longer depends on someone's mood or on who is at the counter. An auto shop, salon or office usually collects for work already done. A shop usually collects for sales on credit or installments. The sequence works for both.

How do you ask a customer to pay, politely?

A polite message is short, has the right details and makes paying easy. Three templates you can adapt:

• Before the due date: "Hi Ana, just a reminder that the R$ 250 installment is due Friday the 14th. Here is the Pix key to make it easy. If you have any questions, just reply here."
• Right after it is late: "Hi Ana, we haven't found the R$ 250 payment that was due on the 14th. It may have just slipped. If you already paid, please send me the receipt. If you need another date, let me know and we'll work it out."
• Payment plan offer: "Hi Ana, the R$ 250 balance has been open since the 14th. To help, I can split it in two, on the 25th and the 10th. Does that work for you?"

The amounts and dates above are only examples. Notice what repeats: the person's name, the amount, the date, an easy way to pay and an option for someone who is short on cash. Avoid threats, all caps and messages outside business hours.

What does Brazilian law forbid in debt collection?

When the customer is a consumer, Brazil's consumer protection code applies (Código de Defesa do Consumidor, Law 8,078/1990). Article 42 says that, when collecting debts, a consumer in default must not be exposed to ridicule or subjected to any kind of embarrassment or threat. In practice, that rules out things like:

• collecting in front of other customers or in a WhatsApp group;
• talking about the debt with the customer's neighbors, coworkers or relatives;
• making threats or using an offensive tone;
• posting debtors' names on social media or on the store's notice board.

The same article's sole paragraph says that anyone charged an undue amount is entitled to get back double what they overpaid, with inflation adjustment and legal interest, unless there was a justifiable mistake. So check the amount before sending any collection notice.

Article 42-A requires every collection document to show the supplier's name, address and taxpayer number (CPF or CNPJ). Put these details on the payment slip, the letter and the message template. If you have doubts about a specific case, talk to a lawyer.

What do you do when a customer still won't pay?

When reminders don't work, change the channel and the tone, while staying polite:

• Call. A phone conversation solves a lot that a message doesn't. Ask what happened before mentioning late fees.
• Offer a written agreement. A new date or installments, with clear amounts and due dates, confirmed by the customer in writing.
• Keep records. Save messages, receipts and the agreement. If the case goes further, that history matters.
• Get advice. Formal protest, credit bureau reporting and lawsuits each have their own rules. Decide on those steps with a lawyer or your accountant.

Meanwhile, review your terms for that customer, such as asking for prepayment or a deposit on the next job. Track the overdue total in your cash flow, because money that doesn't come in changes what you can pay that month.

Can you automate payment reminders on WhatsApp?

Yes. Through the official WhatsApp API (the WhatsApp Business Platform, used by customer service systems), the reminder goes out on its own on the right date, with the customer's name, the amount and the payment link pulled from your spreadsheet or system.

A few Meta rules apply here:

• A business can only send free-form messages inside the 24-hour customer service window, which starts when the customer writes or calls. Outside it, only Meta-approved template messages are allowed. Payment reminders usually go out outside the window, so they need an approved template.
• Meta charges per delivered message, based on the category and the country of the recipient's number. It groups template messages into marketing, with a promotional goal, and utility, with a transactional or informational goal, among others. Rates are in the table on Meta's pricing page and change over time.
• Messages the customer sends to the business are not charged.

The WhatsApp Business phone app is free, but it doesn't send reminders on its own from a list of due dates. See cost details in the article on WhatsApp Business API pricing and how Lotaloja builds WhatsApp automation.

How do you reduce late payments in your business?

Much of the work happens before a payment is late:

• Agree in writing. Amount, date and payment method in a quote or contract the customer approves.
• Ask for a deposit on larger or custom jobs.
• Make paying easy. Send the Pix key or link with the reminder, so the customer can pay right away.
• Use Pix Automático for charges that repeat, such as gym memberships, maintenance plans or subscriptions. It is a recurring version of Pix, Brazil's instant payment system, and it went live on June 16, 2025, according to the Central Bank. The customer authorizes once, sets rules such as a maximum amount, and their bank pays each charge on the date. To receive through Pix Automático, the business must be a legal entity with an active CNPJ (business tax ID) and sign up with the bank or institution where it has an account. The Central Bank says receivers may be charged a fee, depending on the institution.
• Review it every week. A list of who is late, with amounts and days, shows the problem early. It can arrive ready-made in an automatic weekly report.

To see other finance tasks AI already handles, read AI in finance. If you want to know where to start in your business, take the free assessment.