How to get your customers to pay you quicker

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As a small business, you rely on your clients to pay you promptly as you probably don’t have a large amount of money to tide you over. You need to have your invoices paid quickly to cover expenses and maintain the good financial health of your company. So how can you make sure you get paid on time? Here are some suggestions that you may want to consider when you next invoice a client.

Clearing invoicing

To start with the basics, make sure you are providing your clients with clear invoices. If they do not understand the charges or are confused by what you send them then it is going to cause a delay in their payments. Use an invoice template if you are unsure exactly how to lay it out or what to include, it’s a quick and easy way to ensure you create professional-looking and accurate invoices every time without spending too much time away from other important tasks! 

Invoice quickly

The best way to get an invoice paid quickly is to send the invoice quickly. Try sending the invoice along with the final draft of your work or make it a routine to send a final email once the project is complete with the invoice attached – if you put it off then it will likely be forgotten.

Carrot and stick

If you are not familiar with the carrot and stick method, it is basically the principle of using positive and negative reinforcement. The carrot in this situation would be incentives to clients to encourage early payment such as discounts or special offers. The stick, or negative reinforcement, would be instigating penalties for late payments. Introducing these policies can help get your regular clients into the habit of paying on time. You should always discuss these payment policies prior to taking on a project and ensure that the client is fully aware of all the terms, especially any fee they make be charged if they are late on their payment.

Follow up on late payments

If a client is late on paying their invoice, then do not hesitate to chase them up. The day an invoice becomes past its due date, send a polite reminder email to the client informing them – it could very well be that they have just forgotten and need a gentle nudge to kick them into action. Continue to send these reminders at regular intervals by phone and email until they complete the payment. You are owed for the service you have provided so do not be afraid to pursue it (but remember to be polite as clients are far less likely to respond positively if they feel you are coming across as aggressive)

Set clear payment terms

Delays may be caused when clients are uncertain of your payment terms or if they have doubts about what they have been charged – there may be items or charges on the invoice that they were not expecting and so they start getting in touch to question things with you. The best way to ensure swift and smooth payment is to outline all your payment terms upfront and also include this information clearly on your invoices.