Different Methods Of Getting Your Invoices Paid On Time
Many, if not all, small business owners rely on getting paid by their customers in order to keep up with the costs of running a business. When payments are delayed or missed, it can be detrimental to business. It can really put a spanner in the works when it comes to the simple things like being able to pay yourself a wage, so it’s critical that you enable your clients to pay in several different methods.
The good news is that there are steps you can put in place to make payments easier; your clients will struggle to find an excuse to avoid paying when the right business management tools are in place.
Have a look below at some of the ways you can help get your clients to pay for your services on time:
Have Clear Due Dates
Communication is definitely key to having your invoices paid on time. Before engaging with a client to provide a service, you should both set out your expectations regarding the time scale for services provided compared to payments made. It’s best to be straightforward and exact to increase your chances of being paid on time, such as selecting a particular date, for example, payment due by 30th July. When setting a date, make sure the time scale is agreeable with the client’s relevant departments. You could even consider including a late payment fee to cover any costs you incur for non-payment.
Use Digital
We are definitely moving very quickly to becoming a completely digital world, and the need for online payment solutions is steadily growing. There are several platforms available where you can send, receive and track payments, such as PayPal. You can even pay someone through their mobile now, so maybe these methods could prove useful. When you’re looking for a platform to use, make sure it can integrate with your current accounting and business level.
Point Of Contact
You might be surprised to learn that the speed of service for paying invoices could come down to having the right contact who will get it paid on time. You may have a brilliant relationship as a freelancer with one department; however, they are continuously late with payments. Well, this could be because you’re sending your invoice to the contact that you know and then they are passing it to the accounts team. If you’re constantly struggling to have invoices paid on time, try asking for the accounts department directly, make sure you’re communicating with the individual who is authorised to complete the payment and then just cc your contact for the work side of things. If you only ever communicate through a middleman, it’s bound to delay the process further.
The point is that there are no perfect or simple solutions to avoid late payments or, occasionally, no payments. Some clients are just less punctual than others. If you have clients who are continuously late, it may be time to rethink who you are working with.
Do you have any other proven methods that help to get invoices paid on time? Please share them in the comments section below.
