Just imagine, you successfully completed all your projects and received all payments within a week. Sounds great. Right? You would never run out of cash, and your projects will run smoothly.
Unfortunately, the real business scenario is far different. You might have to send 10s of emails, make calls and even land up in your client’s office for clearing your due upon receipt. While this may look like a lot of effort, you must not forget that you need cash to seamlessly run your business. The best online payment software can help you with this and much more.
Without further ado, let us read about some methods you can use to get your invoices cleared faster.
1. Be Bold
We suggest that you thoroughly analyze the situation first and then decide how you plan to recover your fund. While you may be tempted to take legal action against a customer who has slipped on a payment, it can harm your relations. In the worst-case scenario, your competitor may end up befriending the client. But, you also need to get the money.
The best idea is to fix a time period you would wait for getting your due upon receipt cleared and then take the process further. With some of the best online payment software in the market, you can easily achieve it and say goodbye to delayed payments.
2. Show Professionalism
Excellent operational ability and professional behavior are the keys to retaining your clients. Make sure your website has customer-centric information and has testimonials from previous clients. Always remember just because you are a service provider, you can treat customers any less.
It is imperative to be professional at all times and communicate regularly with your customers, even if you have to say hello. This kind of regard and attention will be duly paid when your payment cycle arrives.
3. Understand Your Customers
If you make a sincere effort to understand your customer, it goes a long way. There are several problems they face, and you must be aware of them. Do your research before you finalize a meeting. Customers who work on their whim, are clueless, or are cheapskates are sure to ruin your planning and waste your time and money. Thus, it is better to avoid them together.
4. Give Out Incentives
Who doesn’t like an extra gift? So, to avoid instances of late payments, you can give some discounts to your customers or provide them a good deal. The best online payment software lets you incorporate it within the system, so you do not have to make any extra effort.
5. Late Penalties
Despite giving out incentives, there will be customers who will delay your payments. To deal with such customers, what you can do is levy a late payment fee.
This will give out a clear message and let them know that you are a professional business and that late payment behavior will not be entertained.
6. Automated Invoicing
Paper invoices for getting your due upon receipt can lead to several excuses from your clients. They can conveniently blame the postal service, and you will be sitting worrying about your payment release. To solve this, you can use the best online payment software in the market and let it generate and send invoices. These solutions will send reminders to your clients till they clear the payment.
7. Have Multiple Payment Methods
Are you someone who only accepts cash or cheque payments? Well, it is not the wisest of ideas. The more payment options you provide, the easier it is for your customers to expedite your payments.
Cash-free invoicing is one of the best ways to collect your due upon receipt. Besides, you can also offer debit/credit card payments, bank transfers, and bank deposits.
8. Advance Payments
Another way to get your payments faster is to request an advance from your customers. It will help you build trust with them and establish brand credibility.
9. No Free Work
If you have a long-term contract with your client and lag behind on it, immediately stop their work. Only resume it once they cleared your due upon receipt. Soon your customers will realize that their behavior will not be tolerated, and it will also impact their work.
If none of the above-mentioned methods work and you still encounter customers that make late payments, give them a gentle reminder or schedule a telephonic call with them.
As a result, you will be able to communicate well, and they will also get a chance to explain why the delay happened. Therefore, it is likely that you will get the payment soon.