Continuous late or delayed payments can very easily bring a start up or small business to its knees. A healthy cashflow allows you make the investments you need to keep your business running so it is very important to have a firm hand on what you are spending on and just as importantly, what is coming in. Customers are key to this as most of your return will come from invoices you have sent out in return for goods and services they have procured from your business.

It isn’t uncommon to find customers that wouldn’t bust a gut to pay their dues on time. Why not try these seven hacks to ensure you are getting your money’s worth on time.

Bill on time

Have a set time of the month to verify all invoices have been sent. A lack of organisation could result in your customers receiving the invoice too late to meet your payment target or you might even overlook certain areas resulting in lost payment.

Use technology

Reduce the stress on customers and make it quick an easy to make payment using a mobile and online system. Google Pay, Amazon Pay, Paypal, Apple Pay are some more popular choices particularly with retail and e-commerce businesses.

Hire a watchdog

In other words, hire a book keeper or book keeping service to keep track of where the money is being held up and do the follow up. A book keeper can also help prevent errors with invoicing as well as manage your company cash inflow and outflow.

Maintain a professional client relationship

Business is Business and fees are due after you have delivered a good or service. Gratitude isn’t an acceptable form or payment if you are in business to make profit unless you see this as a means of increasing customer loyalty and expect more business in the longer term.

Have an agreement

The terms of your agreement covers what you are billing for, make this clear and obtain agreement before proceeding with the work. Ensure this is mapped out clearly on invoices to avoid delays with clarification. Itemise all necessary areas, such as quantity, hours worked, discount if any or VAT.

Offer a payment plan

Give customers a flexible option for payment such as spreading the costs and offer incentives for quick payment. If you pursue a flexible option for payment ensure you have a water tight agreement in place.

Have a late payment policy

Ensure this is set out clearly from the onset in the terms of your service as it shouldn’t come as surprise to your client. Send a courtesy reminder about late penalties to the client before your deadline and ensure whatever you charge, it is in line with the laws in your area.

Are there are other strategies you use to ensure prompt payment from customers? Let’s continue the discussion, Join our community for more business tips.

2019-06-17T21:52:28+00:00

5 Comments

  1. Mama Writes Reviews June 21, 2019 at 12:53 am - Reply

    You know, you’d be surprised how many people DON’T bill on time. DRIVES ME CRAZY! Then, they get mad at ME because payment is late. Dude, get your bill out on time and I’ll pay it on time!

  2. Heena June 21, 2019 at 5:35 pm - Reply

    Very Informative and Useful tips for persons looking to start with business or struggling with payments from clients. Will bookmark this as I may need this when I may start up with my own one.
    Thanks for sharing.
    Heena

    • admin June 23, 2019 at 8:26 pm - Reply

      Thanks Heena, we would love to support you when you start.Best wishes

  3. Tara June 24, 2019 at 2:37 am - Reply

    need this to keep up with some of my contracts, I keep it all in a note on my phone. Yikes!

    • admin June 24, 2019 at 6:13 pm - Reply

      Oh Tara, you must convert those notes to payments. Quickbooks is a great for keeping track and businesses like Gravysolutions.io provide follow up with your customers on bounced or incomplete payments, so you aren’t missing out somewhere

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