Getting timely payments from clients is no easy task. While you may have the best online payment software, you would still need to deal with customers who avoid paying on time. Not only do late payments create issues in cash flow, but they can also lead to your entire business being shut down.
Luckily, there are several methods you can utilize to help your customers pay on time. All this while maintaining your relations with them. Are you ready to note them? Let’s dive in!
1. Have a written agreement
This goes without saying, Have a written agreement between you and your clients. It should have the exact payment terms, payment details, and milestones. Also, make it a point to discuss that so that there are no surprises in the future. Moreover, highlight the terms both parties have agreed on to ensure smooth customer relations. You can easily manage them via your online invoicing software.
For instance, you can use a word like payment due within ten days. This will help your customers know that you are expecting payment within ten days.
2. Adhere to your payment terms
While it is great to have flexible payment terms, it is not always a convenient option. Your online invoicing software will help you set these terms with ease and make your processes smooth.
Unfortunately, some customers are very stubborn and do not pay you on time despite offering a flexible schedule. To avoid such issues, we suggest that you have a stricter payment policy. best will be if you have a shorter payment cycle, for example, 15 days
3. Figure out a suitable payment schedule
Similar to your clients, you should also be prompt in sending your invoices. Please make sure you send them on the same date each month and stick to that schedule no matter what. Luckily you can automate this process with your online payment processing software. This way, you’ll be able to manage your cash flow and eliminate the headache of remembering dates.
It is possible to let your customers settle their bills once or twice a month. Thus, they will be in the know-how and Clear your payment sooner as they know you will be sending your invoice.
But, here’s the catch. Make sure you know the dates when your customers make payments and send invoices on the dates only. It is possible that you can wait for 30 or even 60 days and then suffer from poor cash flow!
4. Ask for advance payments
Ideally, speaking, asking for advance payments or some deposit is suitable for large orders. This will ensure that there will be no issues in payments later, and you can also work with a free mind. You can use your free accounting software for businesses to create invoices for advance payments and send them to your clients.
5. Offer multiple payment methods
Let’s face it; your customers are equally busy as you. So it is important to offer them multiple payment options so that they can pay you on time irrespective of their schedule.
We suggest that you offer more options than simple cash payments. This could include pay per credit card payments, debit card payments, and others. Choose an online payment software that lets you integrate with multiple payment gateways.
6. Say yes to direct debit payments
No, if you really don’t have time to change late payments, accepting direct payments would be the best strategy for you. This will help you charge your customers on a regular schedule automatically.
But, setting up this payment is not easy. There are several processes and rules you need to understand and then comply with. However, with good online payment processing software, you can avoid the hassle and get it done in just a few clicks.
7. Sending regular payment reminders
You need to understand that it is ok to send in a friendly reminder to your clients about your payments. You can do it not only when the payment is overdue but also when the deadline is approaching. In addition, you can use your free accounting software for businesses and automate the entire process.
Trust as automated reminders feel less pushy and also more effective at getting your payment cleared. With digital tools like online payment software, all you need to do is draft a simple email, and your job is done.
8. Reward good customers
Well, who doesn’t like a reward for their good behavior? Your clients deserve the same when they pay on time. So it makes good sense to offer them some incentives like a gift certificate, a small discount, or any other thing you can think of. All you need to do is make sure that this incentive does not sabotage your cash flow, but at the same time is interesting enough and excites your customers into making timely payments.
9. Charge late payment fee
Just like good behavior begets an award, a bad one should be followed by punishment. In this case, charging a late fee would be the best option. Now despite all measures, there will still be customers who don’t pay you on time. The best way to handle such clients is by charging them a late payment fee. Now the question arises, how much fees should you charge them? 1.2 % is good enough to grab their attention and put them into a habit of timely payments.
Chasing late payments is a task no business owner wants to do. But, with online payment processing software and free accounting software for business, you will no longer need to spend your precious time calling up customers.
A few tips may work for you, or maybe one works just fine. Trying out different strategies is always a good option.
If you are still searching for online invoicing software that can help streamline your finances and meet your invoicing needs, please feel free to contact us at +1-805-491-9393 or write to us at firstname.lastname@example.org.