INVOICE FOLLOW-UP SEQUENCE Prepared by: Waverly Motion Graphics Client: Stride Athletic Apparel Invoice: INV-2025-112, $4,750.00 Days Overdue: 9 days Date: May 2026 ════════════════════════════════════ ───────────────────────────────────────────────────── SEQUENCE OVERVIEW ───────────────────────────────────────────────────── Stage 1 — Friendly Reminder ........ 1 to 7 days overdue Stage 2 — Formal Follow-Up ..... 8 to 21 days overdue Stage 3 — Final Notice ............. 22 to 30 days overdue Stage 4 — Legal Escalation ......... 30 plus days overdue ACTIVE STAGE: Stage 2 — Formal Follow-Up Annual Cost of This Late-Paying Client: Formula: $4,750.00 x 12 x 30 / 365 x 5% Result: $4,750.00 x 12 = $57,000.00 annual billings. $57,000.00 x 30 / 365 = $4,684.93. $4,684.93 x 5% = $234.25 annual hidden financing cost. Note: This figure represents the silent cost Waverly Motion Graphics absorbs each year by effectively providing Stride Athletic Apparel with an interest-free credit facility, capital that could otherwise be deployed in the business or held in an interest-bearing account. ───────────────────────────────────────────────────── STAGE 1 — FRIENDLY REMINDER Tone: Warm and professional — assume oversight, not intent Use when: 1 to 7 days overdue ───────────────────────────────────────────────────── Subject: Quick Reminder — INV-2025-112 for $4,750.00 Dear Stride Athletic Apparel, I hope things are going well on your end. I am reaching out with a friendly heads-up that invoice INV-2025-112 passed its due date on April 30, 2025, and we have not yet received payment. Given how smoothly we have always worked together, I have no doubt this has simply been overlooked during what I imagine is a busy period for your team. For your reference, the details are: Invoice number INV-2025-112, amount due $4,750.00, original due date April 30, 2025. Please use the payment details provided in your original contract or contact us to confirm them. If you have any questions about the invoice or need anything from our side to facilitate processing, please do not hesitate to reach out and we will respond right away. We genuinely value the relationship we have built with your team over the years and look forward to getting this wrapped up quickly. Kind regards, Waverly Motion Graphics ───────────────────────────────────────────────────── INTERNAL NOTE — REMOVE BEFORE SENDING: Psychology: Opening with warmth and assuming administrative oversight rather than deliberate non-payment removes the client's need to become defensive, which keeps communication channels open and produces faster voluntary settlement at this early stage. ───────────────────────────────────────────────────── STAGE 2 — FORMAL FOLLOW-UP Tone: Professional and firm — payment is now expected Use when: 8 to 21 days overdue ───────────────────────────────────────────────────── Subject: Second Notice — INV-2025-112 Now 9 Days Overdue Dear Stride Athletic Apparel, A payment reminder was sent to you recently regarding the outstanding balance on your account with Waverly Motion Graphics, and we have not received payment or any communication regarding when settlement will be made. We are writing again to formally request that this matter be addressed without further delay. The outstanding details are as follows: Invoice number INV-2025-112, amount due $4,750.00, original due date April 30, 2025, now 9 days overdue. Please use the payment details provided in your original contract or contact us to confirm them. We ask that you reference the invoice number with your payment to ensure prompt allocation to your account. We require payment in full within 5 business days of this notice. Please be advised that continued non-payment beyond this period may necessitate further action to recover the outstanding balance. We trust you will treat this matter with the urgency it now warrants. Regards, Waverly Motion Graphics ───────────────────────────────────────────────────── INTERNAL NOTE — REMOVE BEFORE SENDING: Psychology: The measured but unmistakable shift from warm to firm signals to the client that the relationship goodwill buffer has been used and that further delay now carries professional consequences, which activates a stronger sense of urgency than a second friendly reminder would produce. ───────────────────────────────────────────────────── STAGE 3 — FINAL NOTICE Tone: Formal and serious — last contact before legal action Use when: 22 to 30 days overdue ───────────────────────────────────────────────────── Late Fee Calculation: Formula: $4,750.00 x 1.5% x (30 / 30) Late Fee Amount: $4,750.00 x 0.015 x 1.00 = $71.25 Total Amount Now Owed: $4,750.00 + $71.25 = $4,821.25 Subject: FINAL NOTICE — INV-2025-112 — Total Amount Due $4,821.25 Dear Stride Athletic Apparel, This communication constitutes a formal final notice regarding the outstanding balance owed to Waverly Motion Graphics on invoice INV-2025-112. Two prior written communications have been issued and have produced neither payment nor a satisfactory response. All reasonable attempts to resolve this matter have been exhausted. The full outstanding amount is detailed as follows: Invoice number INV-2025-112, original invoice amount $4,750.00, original due date April 30, 2025. A late fee of $71.25 has been applied, bringing the total amount now owed to $4,821.25. Full payment of $4,821.25 must be received within 5 business days of the date of this notice. Please use the payment details provided in your original contract or contact us immediately. Failure to remit full payment of $4,821.25 by the stated deadline will result in formal legal action being initiated against Stride Athletic Apparel without further notice or correspondence. All costs associated with legal recovery proceedings will be pursued in addition to the outstanding balance. Yours formally, Waverly Motion Graphics ───────────────────────────────────────────────────── INTERNAL NOTE — REMOVE BEFORE SENDING: Psychology: The complete removal of relational language combined with the introduction of a quantified financial penalty reframes the situation from a communication issue to a legal and financial liability, which eliminates the ambiguity that allows habitual late payers to continue deprioritising settlement. ───────────────────────────────────────────────────── STAGE 4 — LEGAL ESCALATION PATH Use when: 30 plus days overdue and Stage 3 ignored ───────────────────────────────────────────────────── Step 1 — Formal Legal Demand Letter: A formal legal demand letter is a written notice issued by a licensed attorney or solicitor on behalf of Waverly Motion Graphics that formally demands payment within a defined timeframe, typically 7 to 14 days. Unlike internal correspondence, a letter on legal letterhead signals that professional proceedings have commenced and carries a significantly higher psychological and legal weight. The letter must state the full amount owed including accrued late fees, reference the original invoice and contract terms, specify the exact payment deadline, and make explicit that legal action will follow non-compliance. The tone must be entirely factual and devoid of any negotiation language. Step 2 — Debt Collection Agency: A commercial debt collection agency should be engaged if the formal legal demand letter produces no response within the stated timeframe. Agencies typically operate on a contingency basis, charging commission of between 15 and 35 percent of the recovered amount depending on the age and complexity of the debt. Upon engagement, the agency assumes all direct contact with the debtor, which removes the administrative burden from Waverly Motion Graphics and introduces a third party whose formal involvement frequently prompts settlement from clients who have remained unresponsive to direct communication. Step 3 — Small Claims Court: Small claims court provides a cost-effective legal mechanism for recovering commercial debts, with jurisdictional thresholds in the United States typically ranging from $5,000.00 to $25,000.00 depending on the state. The total amount of $4,821.25 owed by Stride Athletic Apparel falls within the small claims threshold in most jurisdictions. Before filing, Waverly Motion Graphics must prepare a complete documentation package including the original signed contract or agreement, the invoice and proof of delivery or project completion, a full chronological record of all written communications, and evidence that the Stage 3 final notice was issued and received. Filing fees are generally modest and are recoverable as part of the judgement if the claim succeeds. Step 4 — Credit Bureau Reporting: Reporting a non-paying commercial client to a business credit bureau such as Dun & Bradstreet or Experian Business creates a formal record on the debtor's commercial credit profile, which can affect their ability to obtain financing, negotiate supplier credit terms, and enter new commercial agreements. This step is appropriate only after all prior recovery efforts have been exhausted and the debtor has demonstrated a clear and sustained unwillingness to settle a legitimate and documented debt. The process requires submission of the invoice, payment history, and recovery attempt records to the relevant bureau. Important Legal Note: The steps outlined in this section are general guidance only and Waverly Motion Graphics is strongly advised to consult a qualified legal professional licensed in the relevant jurisdiction before initiating any formal legal action or credit bureau reporting against Stride Athletic Apparel. ───────────────────────────────────────────────────── NEGOTIATION RESPONSE SCRIPTS ───────────────────────────────────────────────────── Excuse 1 — "We are still processing your invoice." Subject: Re: INV-2025-112 — Payment Date Confirmation Required Thank you for your response. As INV-2025-112 for $4,750.00 is now 9 days past its due date of April 30, 2025, we would appreciate your confirmation of the specific date on which payment will be released from your system. Please provide this confirmed date in writing by end of business tomorrow so that we can update our records and determine whether further steps are required. Excuse 2 — "Our accounts department is handling it." Subject: Re: INV-2025-112 — Direct Accounts Contact Requested Thank you for letting us know. To ensure INV-2025-112 for $4,750.00 is resolved without further delay, please provide the full name, direct email address, and telephone number of the accounts team member responsible for processing this payment within 48 hours of this message. If we do not receive this information or a confirmed payment date within that window, we will have no option but to treat this account as requiring formal escalation. Excuse 3 — "We are experiencing cash flow issues." Subject: Re: INV-2025-112 — Proposed Structured Payment Arrangement We appreciate you communicating your current situation openly and understand that cash flow pressures can arise unexpectedly. In the interest of reaching a resolution that works for both parties, we are prepared to consider a structured payment arrangement for the $4,750.00 balance on INV-2025-112, provided the terms are agreed in writing no later than end of business this Friday. Please respond by that date with your proposed schedule so that we can confirm whether it is acceptable and formalise the arrangement promptly. ───────────────────────────────────────────────────── DISCLAIMER This sequence is intended for professional communication purposes only. Late fee rates and legal escalation steps are general guidelines and may vary by jurisdiction and contract terms. Consult a qualified legal or financial professional before initiating formal proceedings. ───────────────────────────────────────────────────── Prepared by: Waverly Motion Graphics Reference: INV-2025-112 Date: May 2026 ════════════════════════════════════