Client payments are crucial for your business. They’re necessary for good cash flow, and if your customers don’t pay you on time, you won’t be able to pay your company’s bills. If it’s become a challenge to get customers to pay you on time and you’re following up on unpaid invoices every month, it’s time to find a new approach to get the money you’re owed. Fortunately, there are simple ways you can encourage clients to pay you on time.
Offer early payment discounts
Encourage your customers to pay you early by offering early payment discounts. Some of your clients may be eager to save some money, even if you’re only offering a five per cent discount, and this could be a good enough reason for them to pay you before the invoice is due. If your payment terms include a penalty fee for late payments, remind your clients of this when you share the incentive with them.
Send invoices on time
The sooner you send invoices to clients, the sooner you’ll get paid. Make sure you include the payment terms on every invoice, so your customers understand the consequences of late payments. If invoicing is a time-consuming task for your team, use Invoice Software to create and send invoices automatically once a job is complete and generate recurring invoices for regular clients.
Communicate payment terms clearly
When a client signs up for your services, communicate the payment terms verbally and in the contract. If you decide to offer early payment discounts or implement late fees, make sure the client knows before they sign the contract. An unexpected late fee could strain your relationship with the customer, affecting business with them in the future. Include the invoice date, the total amount due, when the cost must be paid, and a list of payment methods.
Make the payment process easy
Offer as many simple payment options as possible to make it easy for your clients to pay you. If it’s easy for them to make payments, you’ll save time following up on outstanding invoices. Add all your available payment methods on your invoices, including your billing details, so your clients always know how they can pay you. One of the easiest ways to make payment easy is to share a secure payment link in your email invoices, as this will encourage your clients to settle their accounts as soon as they’ve received the statement.
Set up automatic payment reminders
Use Invoice Software to set up automatic payment reminders so you don’t have to email or call every client to follow up on overdue invoices. Automatic reminders make it easier to manage all outstanding invoices, and they save you time. You can set a payment reminder to be sent after a certain number of days, depending on how soon you want to follow up on the invoice. For example, you can send a payment reminder when the invoice is 30 days overdue, or 14 days late. Invoice Software can also be used to keep track of all unpaid, paid, and recurring invoices.