5 Tips For Getting Paid Quicker
Everyone dislikes waiting to get paid, especially when there seems to be no end in site and you start to doubt whether that invoice will ever be settled. Having good practices in place can reduce the need, or urgency of need, for cashflow finance. It also makes you more credible as a business when borrowing.
Here are 5 little things you can do to help yourself get paid quicker.
1 – Make Invoicing a Priority
Don’t leave invoicing until a set time in the month or a task that you ‘have’ to do, when an invoice is due then get it issued and get it sent. It is well worth investing in a process to send invoices out, either as a pdf template or as part of a bookkeeping system. There are loads of good, low priced options out there.
2 – Make It Electronic
Don’t post invoices. Generate the invoice then send it as a pdf to the right person. Many bookkeeping packages offer the option to generate invoices and allow the client to pay on-line. By all means post it, but email it immediately.
3 – Please & Thank You
Strangely manners matter. By saying ‘please’ and ‘thank you’ you do increase the chances of getting paid on time. Send your invoice and word it politely, ask the client to ‘please pay’ and ‘thank you for working with us’ as manners really do help you get paid quicker.
4 – Chase It
When an invoice falls overdue then chase it up. A good practice is to have a series of standard letters that you use to chase payment. Make the first one nice, then gradually get a little more insistent. On the whole clients pay late because they have forgotten rather than being unwilling to pay you. Remember to email your chaser as a pdf. You can also use low cost software to do this for you, things like Chaser can work well.
5 – Make It Clear
Tell the client what they need to do and when. Make it clear what needs to be paid to where and by when. Don’t use jargon such as ‘net payment’, ‘payment by ACH’ or ‘payment within terms’. Make it simple, ask for payment of £x by a set date using bank payment to an account (quote the right details) or by cheque to xx. Say it how you want it and say it with clarity.
You would also do well to send the invoice to the right person. It can be worthwhile establishing who this is and getting their contact details at the start rather than trying to find out where to send your invoice at the end.
Hope It Helps
These are just a few small tips to getting paid quicker, if you have any of your own then please add them above or drop a reply and I can add them on next time.
By Dave Farmer