If your business relies on invoices, then you will be familiar with slow-paying consumers. As per the survey, “Over a third of small business invoices or bills are paid late.” There’s no doubt that slow or late invoices are an inevitable element of operating a business. Therefore, we have created a list of tips you need to take into consideration to increase your chances of getting paid on time.
Here are the top 8 tips to get your invoices paid faster:
1. Create Simple, Clear Invoices
If you’re facing trouble getting your clients to pay your bills, the issue could lie within your invoices. Poorly crafted and complex invoices may lead to late payments as they may confuse your customers. To resolve this problem, you need to ensure that your invoices are simple, clear, and streamlined. Remember to include all the essential information your clients need to know to make payments. The most critical points are – the total due amount and the payment deadline.
2. Request Prepayment or Deposits
Requesting a prepayment or deposit for a project before starting the work is another way to get paid faster. It can help you ensure that you’re getting paid for your work. Asking for a deposit is the best option for bigger, long-term projects that could take multiple months for completion. Receiving a token amount from the client before initiating the work ensures that you have some money to cover the project’s expenses. It can also help you manage a smooth cash flow to pay for other business expenses.
3. Send Online Invoices
If you still mail your invoices manually, then you’re making a huge mistake. It is high time to switch to e-invoices. Sending invoices online is straightforward, inexpensive, and fast. It could save you a lot of money and time – no need to print invoices and wait on the mailman. Send your invoices instantly through e-invoices and get paid faster. Besides, there are several invoicing software that can help you track your invoices on-time without any mistake.
4. Offer Multiple Online Payment Options
If you’re sending online invoices, then you must accept online payments. Offering multiple online payment options to your clients can increase your chances of getting invoices paid on time. In fact, as per a survey, businesses that accept both PayPal and credit card payments get paid 20 days faster than others. Therefore, try to make it as easy as possible for your clients to pay your invoices by offering different payment options.
5. Give Discounts
Offering a small discount for clients who pay invoices early is another idea to get your invoices paid fast. You can consider giving 5 to 10% discount to people who deposit their invoices within the first 10 days. Remember, this option is not for all businesses. But, it is worth trying for a company that is struggling with cash flow because of late invoice payments.
6. Apply Late Fees
Conducting extra charges for unpaid invoices is something you can consider thinking about. This can be an effective way to encourage your customers not to skip deadlines and pay their invoices on time. Moreover, do not forget to talk about this late fee policy on your invoices in the Terms & Conditions section. You can also discuss the same directly to your customers before starting working for them.
7. Use Polite Tone
When sending invoices or follow up on due bills, make sure you are using a polite tone. Insert a pleasant “Thank You” and “Please” on your invoice or mail to leave a good impression on your clients – no matter what. Being polite and calm with customers, even when their payments are overdue, ensures a healthy relationship with them and brings you more opportunities in the future.
8. Invest in Invoicing Software
Last but not least. If we talk about getting your invoices paid quickly, invoicing software is an integral part. Invoicing software makes it easy for companies to send invoices immediately, automize invoicing procedures, and encourage clients to pay fast with online payments. Besides, here’s a list of reasons that show why you must use invoicing software:
- To send online invoices to clients
- To accept invoice payments from consumers directly online
- To save on time, paper and ink
- To see when clients have received and viewed their invoices
- To send automatic payment reminders to late-paying clients and so on
Wrapping Up the Post
These are some top and practical tips that you must follow to get your invoices paid faster. Remember, every business is different, and so are the clients. That means a single idea will not work effectively on all companies and customers. Don’t stick to one tip; try all tactics and determine which one produces the best results for your business. Follow these tips and get ready to see a change in the way you get your invoices paid.