Overdue Payments are a growing issue for businesses across Dubai
In a city like Dubai, where trade is fast, deals are plenty, and invoices are flying around every day, chasing overdue payments has quietly become a serious problem for small and medium businesses.
From building material suppliers to hardware traders, and even service providers, many are facing delayed payments that disrupt their daily operations.
Overdue payments don’t just slow down cash flow — they damage trust, create confusion, and sometimes lead to legal troubles. But here’s the tricky part: how do you chase payments without spoiling the relationship with your customer?
This guide is for UAE businesses that want to learn how to follow up on overdue payments — the polite way, but also firm enough to get results.
Why are overdue payments so common in the UAE?
There are several reasons why payments get delayed in Dubai and other emirates:
- The buyer is waiting for their own payment to arrive
- The person handling accounts has changed or left
- A missing invoice or delivery note
- Intentional delay by the buyer
- Lack of proper payment reminders
- Verbal agreements without written proof
Whatever the cause, the effect is the same — your business suffers.
What’s the best time to follow up?
Don’t wait too long. The first follow-up should happen as soon as the due date passes. Many companies forget or misplace invoices.
Start with a soft reminder within 2-3 days of the due date. If there’s still no response within a week, move to a firmer message.
In Dubai, where weekends are Friday-Saturday, the ideal day to send reminders is Monday or Tuesday morning when the accounts staff are fully active.
How to politely follow up by WhatsApp or email
Most businesses in the UAE prefer quick communication. WhatsApp is widely used, but emails are better for formal follow-ups. Here’s a sample structure you can follow for both:
Day 1-3 (Soft Reminder)
“Good morning, just a kind reminder that Invoice #123 is due. Kindly confirm the payment schedule. Let us know if any documents are required. Thank you.”
Day 5-7 (Firm but Respectful Message)
“We hope you are well. We would like to remind you that payment for Invoice #123, amounting to AED XXXX, was due on [date]. Kindly arrange for settlement at the earliest convenience.”
Day 10+ (Direct Approach)
“This is our third reminder for payment against Invoice #123 (AED XXXX), which is now overdue by [X] days. Kindly confirm the transfer today or advise if there is any issue. We request urgent attention to avoid any business disruption.”
Use your delivery proof smartly
One of the most common reasons buyers delay payments is by saying: “We didn’t receive the invoice,” or “We didn’t get the delivery note.”
Always send delivery notes with company stamp or client signature. Scan and attach them when sending reminders. It shows you’re organised and serious.
Keep all communication in writing. In case the situation ever goes legal, you’ll need every bit of proof.
Maintain a follow-up schedule
Use a simple Excel file or free app to track:
- Invoice number
- Amount
- Date issued
- Payment terms
- Follow-up messages sent
- Expected date of payment
Many UAE-based accounting software systems also offer auto-reminder options. You can set reminders 2 days before due date, on due date, and after.
Visit personally, if needed
If the client is nearby and the amount is significant, consider a short visit. Face-to-face meetings, especially in Dubai’s business culture, can bring faster action than emails.
But keep it professional. Ask for the accounts person, carry the invoice copy, and avoid raising your voice or sounding frustrated.
Avoid begging. Be professional and clear.
Chasing overdue payments doesn’t mean you have to sound helpless. Many traders in the UAE make the mistake of repeatedly using soft language like:
“Please if you don’t mind…” or “Kindly if possible…”
Instead, try:
“We request your urgent attention as this delay is affecting our operations.”
“We trust your cooperation in clearing this today.”
This way, you stay polite but also show urgency.
Offer payment options
Sometimes clients delay because of technical issues — maybe their bank portal is down or they’re waiting for clearance.
In such cases, offering options like:
- Cash or cheque collection
- Partial payment
- Credit card or online payment link
…can make the process easier for them and faster for you.
Add late fee terms to new invoices
If you’ve had repeated issues, consider adding a polite late payment fee clause in future invoices. For example:
“Note: A late payment charge of 2% per month applies after 7 days from due date.”
Even if you don’t always apply it, the presence of this term makes clients act faster.
Legal notice is the last step, not the first
If the overdue payment is significant (say over AED 10,000), and all polite reminders have failed, then a legal notice is a fair step.
But always keep this as your last option. Most UAE businesses will not let matters go that far — especially if your tone has been respectful throughout.
You can use a legal service to send a simple notice or warning letter. This often prompts action without the need for actual court steps.
Prevent the issue next time
You can avoid overdue payments in future by:
- Taking part payment in advance
- Always issuing delivery and invoice documents
- Using signed LPOs (Local Purchase Orders)
- Offering discounts for early payments
- Keeping all terms clear in writing
Why this matters for hardware and building suppliers
In industries like hardware or construction materials, delays in payment can mean you’re stuck waiting while your own stock runs low and your suppliers ask for money.
Sometimes, one delayed payment affects 3-4 other deliveries. So it’s not just about money — it’s about your business moving forward without getting stuck.
Conclusion
Overdue payments are part of the business world, especially in fast-growing places like Dubai. But with the right mix of politeness, follow-up, and firmness, you can collect what’s yours without damaging relationships.
A few changes in how you track, remind, and communicate can help ensure your business runs smoothly — and your cash keeps flowing.