Timely and consistent payments is the lifeblood of any business and owners need to keep this process steady to keep going. To help businesses be on the top of this game, here are a few tips for getting customers pay the invoices in time.
Let them know of your payment expectations
Be specific about the putting dates in the agreement or bill and mode of payment. Without mention of due date in invoices, there is no urgency or timeliness alert. The more specific things will be, the better it will be.
Keep things simple. Make it easy for people
The evolution of technology has made it all seamless and faster. Instead of waiting for customer’s email with bill to fill and send it back, you can share the payment link with bill via email for faster processing.
Offer early bird discount
Provide exclusive discount to clients who pay early to incentivize quick payment, like 5 % discount when an invoice is paid within 10 days.
Settle the disputes, if any
Disputing over Invoice is always a difficult situation. There can be issues related to the amount, deliverables, payment terms, quality, date and time or some other term and condition. Regardless of the concern, there is something that has led the customer to raise the issue and you need to address it sooner or later.
Send reminders
Now they know that when and how much they need to pay, you need to send reminder emailer to let them know that the last date to pay is coming up – gentle and formal reminders.
Put penalty in case of delay
If the client does not pay in time and even after multiple reminders, you need to put penalty in place. Keep this condition in your agreement to help you in the long run. While sending reminders, keep a mention of penalty too for getting prompt response.
Do not take fresh orders from outstanding accounts
Refuse accepting orders from clients who have not paid in time earlier.
Call your client
If things are not going the planned way and you think a call can help you – give the client a call. Things can end differently.
Things gone wrong ? Escalate the issue legally
Usually, businesses are reluctant to take matters legally. Though, this option is always accessible. Escalating the issue does not always mean that you are being ‘not-right’ with your customer, but you are taking the necessary steps to get your due payment. In case you proceed towards taking it legal, make sure that you have all the required documents to show the client fault and the actions you have taken to get your invoice paid.
Conclusion
There is no solution to avoid delayed late payments. While some clients simply lack regularity, some trouble you purposely. Communication is the key here. Before starting with the procedures, ensure that you have a transparent and clear dialogues with your client. You both agree on the dates, invoicing terms and conditions, termination of contract so that there is no space for misinterpretation. Hope you found these tips insightful. Stay tuned for more tips! Sapphire Info Solutions is one of the early adopters of cloud computing. Apart from using all cloud-based accounting systems such as SAGE, Myob, Xero, IRIS, QuickBooks etc, Sapphire has developed its own enterprise software platform to manage workflow & increase productivity & customer satisfaction. Sapphire Outsourcing is pioneer in adopting new technologies to help you achieve digital transformation in your accounting department. Get in touch with us for enabling digitalisation in your business.
