Every business owner understands the pains of getting paid a tad too late by a client. In fact, receiving late payments from clients over a prolonged period of time can even shut your doors permanently. Consistent cash flow is crucial to the survival of any small business, thus every effort you put to keep it steady will help in the long term. Here are some useful tips to get your clients to pay their invoices on time.
Assure clients that paying you is an easy process
With modern technology, you no longer need to send out bills via snail mail and wait for it to get acknowledged. Simply drop a link to the digital invoice via emails and your clients can pay online. You can easily open up this avenue for them to make feel that making payments is easy with a few simple clicks. Alternatively, you can also utilize invoicing programs such as PayPal or QuickBooks Payments to entice your clients to pay earlier.
Implement a penalty for late payments
If you own a credit card, you will be familiar with meeting arbitrary deadlines. And if you do not pay your credit card bills on time, you can be charged a fee, or receive the warning letter that everyone dreads, or even compromise your credit card membership. This is the concept of penalties you should consider implementing into your initial contract for work. You should get your clients to sign off and let them know what will happen if they decide to let the date slide.
State the due date clearly
You may be surprised to know that some businesses do not include a due date in their invoices. It’s quite common that people will not pay until they have to really pay. Hence, you should always state the due date clearly, otherwise they will hold off the payment based on their convenience. Also, it’s always good to have the due date printed in larger fonts than the other details on the invoice.
Don’t hesitate to call your clients
Emails are undeniably useful when it comes to communicating with your clients, but sometimes, a call can be great help too. When you are not receiving a response through your mails, you should call your clients. It makes a huge difference when you are able to get someone on the other end as you can establish a personal connection which is sometimes lacking in the emails. Over the phone, you can drop them a gentle reminder about the late invoice.
Send out timely reminders
Even if you have informed your clients on how and when to pay, you should still send them a reminder when the deadline is near. Oftentimes, an email reminder will suffice and you can schedule such reminders to ensure that your clients will not miss the deadline.
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