Late payments are small businesses’ biggest nightmare.Prompt payments on the other hand can boost your company's financial healthwhile also simplifying the accounting process.
Small businesses massively rely on ample payments to ensureconsistent cash flow for day-to-day running. Dealing with past-due invoice payments is too time-consuming, and it cancreate additional obstacles that obstruct growth.
To ensure that clients pay invoices faster, send invoices out as soon as work on a project is completed, offer convenient payment alternatives, and be willing to follow up as soon as an invoice gets past due.
Do you want to get your invoice paid on time? Here are fivesuper tips to get you started;
Embrace digital invoices
Investing in platforms that provide Electronic invoicing services will reduce the burden of creating and following up on your invoices.By switching from paper invoices to digital invoices, you may make it easierfor your clients to pay you without having to scan papers or doing anything else.
Sending all those bills and reminders manually sounds like an awful lot of effort, and it is. Get invoicing software that will handle the reminders for you and will generate invoices for your customers automatically.Lipana is one such platform.
You will be paid faster if you send out invoices asking for payment for your job as soon as possible. Make it a practice to send your client an invoice as soon as the project is finished.
Get the invoice out as soon as you have delivered products or performed a service. Many businesses only send invoices every couple of weeks or even monthly, lengthening the time it takes to receive paid.
Ask for deposits
Deposits are the best way to get your clients committed topay for goods sold or services delivered. Asking for deposits is often regarded as the best way to kick start a healthy business relationship with new clients.
Having a deposit paid upfront ensures that you have enough money to pay the costs of finishing the project, such as acquiring materials or software. It will also assist you in maintaining a healthy cash flow to cover your other business costs.
Accept a Variety of Payment Methods
Flexibility in payment ensures that your clients have more than one option to submit their payments. Multiple credit cards, cheques, cash,and debit cards can all be used in this way. Allowing your consumers to pay you in the way that is most convenient for them will help you obtain payment for your goods and services much faster.
Reward good customers
Customers should be rewarded if they pay before the due date. It might be a discount on their next payment or extra product. People love incentives, so discover ways to entice your customers to pay faster and on schedule.
While at it, always remember your language matters. It isimportant to be polite to maintain a long and steady relationship with all your customers. Your reminders should also be clear and precise to get ample and adequate responses.