Although you can’t control when your customers decide to pay you, these tips will increase your chances of getting paid on time.
Getting paid on time is key to your business’ success. One of the key reasons that businesses run into cash flow problems is because they’re struggling to collect the money owed to them.
Having a process in place when it comes to billing customers and chasing payments is imperative. You should always be aware of what has been paid and what is outstanding so that you can nip any problems in the bud before they become a danger to your business.
Here are our top tips to help your business get paid on time.
Invoice promptly–Lead by example and invoice customers promptly. The sooner you invoice, the sooner you get paid.
Go electronic– Sending invoices electronically is far more convenient and efficient than sending paper invoices in the post. They are quicker to create, free to send, environmentally-friendly, arrive instantly, and are more difficult to lose, making going electronic a no-brainer.
Automate reminders– If you’re sending reminders and chasing up payments manually there is a far greater chance of communication being sporadic. Automating the process means that reminders will reliably be sent after a set number of days, making it easier for both you and your customers to keep up with what is outstanding.
Offer a discount for early payment– It doesn’t have to be a big discount, even a very small one may be enough of an incentive to encourage customers to pay your invoice promptly.
Stick to your terms– Communicate your payment terms clearly in both your contract and on each invoice. If there is a penalty for late payments then stick to it.
If your business is struggling with cash flow problems or debt, get in touch with our team here at Insolvency Advisor by calling our free helpline on 0845 273 4000.