Friday, May 24, 2024

We All Hate Late Payers. Here’s 7 Ways Your Business Can Get Paid Faster.

( One of the annoying things about running a successful business is when people don’t pay on time. It’s a problem that affects all enterprises from freelancers to large corporations. As you can imagine, a non-paying customer can have a devastating impact on cash flow. Especially if smaller businesses are relying on the payment to stay afloat. Software such as Quickbooks, to Bill Forward will make billing clients/customers a breeze.

Did you know that there are many ways to get your customers to pay faster? And, no, they don’t involve anything illegal or immoral! In fact, the following seven examples are just pure common sense!

  1. Define payment terms before you deal with customers

Your clients need to know what your payment terms are. After all; they aren’t mind-readers! How long do you want to give them to pay? Seven days? Fourteen days? A month? You need to decide what works for you. Also, insure that your payment terms get written on ALL your invoices!

  1. Accept credit card payments

Sometimes your clients might be having a cash flow crisis. In such situations, the burden might be easier by using a credit card to pay for things. It’s easy for any business to accept card payments. Plus, there are high risk credit card processing merchants that cater for certain industries. In short, any business can accept card payments these days.

  1. Offer multiple payment methods

It’s likely that you want your clients to pay directly to your bank account. You should consider offering other payment methods. We’ve already talked about card payment acceptance. What about digital wallet payments from providers like PayPal? And, of course, let’s not forget about cash!

  1. Invoice your clients sooner rather than later

When you complete a job for your customers, invoice them immediately. That way, it will be fresh in their minds that they must pay you for your services. The longer you leave it, the harder it will be to approach the subject of payment.

  1. Offer early payment discounts

Let’s say that you have 30-day payment terms. You could tell your customers that you’ll give them an early payment discount. For example, they could have a 5% discount if they pay within 14 days. That can make a huge difference to large invoice balances!

  1. Be strict with late payment penalties

When you deal with new clients, payment terms are an essential subject to discuss. You should also point out that there will be penalties for late payments. For example, interest added to balances and even legal action. Making them aware of late payment policies will show that you mean business.

  1. Send out payment reminders

Some business owners think that it’s rude to send out payment reminders to customers. But, the truth is, they are necessary. I recommend sending reminders to customers three or so days before the invoice is due.

You can do this in a variety of ways. For example, you could send an email to your customers. Or you could even send SMS text messages to their mobile phones. Doing so will make your invoices more prominent in their minds.

Staff Writer; Kevin Dole

Speak Your Mind

Tell us what you're thinking...
and oh, if you want a pic to show with your comment, go get a gravatar!