One of the worst things about being a business owner right now is clients who think they can take their time paying up. They just don’t seem to understand that you rely on getting that revenue regularly to keep your company afloat, and it sucks.
The good news is, that there are a number of things you can do to vastly increase your chances of being paid on time, as you will see below
- Ude Invoicing Software
If you’re still crafting invoices in a word processor and sending them off into the email ether with a prayer, it’s time to upgrade to invoicing software. Modern invoicing software is like having a personal financial assistant who’s obsessed with getting you paid. Automated reminders? Check. Online payment options? Double-check. A professional look that says, “I know what I’m doing”? Triple-check. It’s like putting your invoicing on autopilot while you sit back and watch the payments roll in (ideally).
- Proper Planning
Next up, we have proper planning, or what I like to call “financial foresight.” This isn’t about gazing into a crystal ball; it’s about setting clear payment terms from the get-go and actually sticking to them. Be as transparent as a freshly cleaned window about when and how you expect to be paid. Will there be late fees? How late is late? These are not fun surprises for your clients. Proper planning also means forecasting your cash flow so you’re not depending on a single payment to keep the lights on.
- The Gentle Nudge
Now, for the gentle nudge, or as I like to call it, “polite pestering.” There’s an art to reminding clients about outstanding invoices without sounding like a broken record. The key? Personalized follow-ups. A friendly email, a courteous call, maybe even a charming carrier pigeon (if you want to get medieval about it). It’s about striking the balance between “I’m a professional” and “Seriously, pay me, please.”
- Reward Prompt Payment
Who doesn’t love a good pat on the back? Or, better yet, a discount? Most people love to feel like they are getting more value, so if you can offer clients a small discount to pay on time, or even better, earlier than necessary, you will find that many of them actually do. Yes, it’s a small hit but if it keeps the cash flowing, maybe it’s worth it?
- Legal Leverage
And finally, when all else fails, don’t be afraid to exercise your legal rights. Obviously, it would be bad for business if you went around threatening legal action every time a client didn’t pay in the dot, but if they’re dragging it out, a strongly worded letter from your attorney could do wonders, and if they still don’t bite, legal action may be appropriate.
You shouldn’t have to wait forever for payment after a job well done, and with the above tips, you won’t! Yes, there might still be the odd straggler, but for the most part, if you are proactive about this stuff, you will see results.
