3 Tips for Making Your Clients Pay Your Invoices Faster
- If your customers are constantly failing to pay your invoices or starting to bargain about the price after you have provided them with your services, you have two options – to start using a collection agency yourself or to read the 3 quick and easy tips below and start receiving your money on time.
Tip 1 – Make Your Customers Aware of Your Payment Terms
In order to have a steady cash flow, you will need to have very solid terms and conditions, especially when it comes to payments. In them, you need to explicitly state when the payments are due and what the consequences of not paying on time are, e.g. price rise, no further business relationship, etc. Once you have your payment terms established, make sure your customers know them too. Send them a copy when they order, and another copy with the electronic invoice or on the back of the invoice, and of course mention them when you first start doing business with them. All this will make it harder for your customers to become debtors – if they know that they are late, they will at least feel slightly guilty about it.
Tip 2 – Have Efficient Debt-Preventive Measures
Sometimes your customers become debtors just because they have forgotten a payment is due. Make sure that never happens. Send them a reminder (by e-mail or text message) a day or two before the payment is due, saying that you just want to make sure they are aware of the outstanding debt. A day or two after the invoice date, send them another e-mail or text, saying that they have missed the payment date and you will be really grateful if they take care of it now. If they still don’t pay, call them in a week or so – then they won’t have any excuses.
Tip 3 – Be Professional With Your Customers
You can’t expect them to be punctual and correct if you are constantly failing to keep your deadlines, deliver low quality services or are being rude and unpleasant. It is well-known that people prefer to pay for the services they like first, so make sure you are one of these services. Make sure you deliver on time what is expected of you (or even more!) and be there when the customer needs to communicate with you in relation to the order. This will ensure a healthy business relationship, part of which will be regular and timely payments.
These 3 tips are really efficient and will help you build a working mechanism for payment collections, but you need to make sure everything is up to date from your perspective. Before sending reminders or calling, check your bank account – maybe the customer has just paid your invoice and there is no need to contact them. Also, keep your notes in order so that you know when your payments are due and when you need to undertake something – otherwise you may well forget about a payment as well.