If you’re struggling with late payments, and about half of small businesses are, here are some simple tips to try.
Invoice without delay
Your customer can’t pay until you've invoiced them, so make sure you send your bill promptly. Customers are also more open to paying when they've just received the goods or services that you delivered. Cash in on the goodwill, there's no reason to delay.
Include all the information
Make sure your invoice has all the right information, including a description of the work or product, the date it was delivered, and any customer requirements such as a purchase order number. Some customers have very specific requirements so ask what they need to see on the invoice. Make the due date clear, too.
Ask for prompt payment
Customers used to get weeks to pay invoices, but that's changing. More than a third of businesses now request payment within a week. Consider doing the same. Starting off at seven days will help set an expectation of prompt payment.
Be easy to pay
Customers will pay faster if they can use their preferred method to hand over the money. Consider whether you can offer them a variety of options, like a credit card or PayPal.
Your job's not done when the invoice goes out the door. You'll need to follow up with the customer to make sure it’s being processed. If the invoice goes past due, it's time to make a phone call.
Talk to your local Cambridge Accounting Team at Accounted4 about your invoicing system, we can help you get paid faster.