If you’re having trouble getting invoices paid by your customers, you’re not alone, as more than 60 percent of small businesses are affected by late payments.
This puts business owners between a rock and a hard place. It’s frustrating to spend hours following up on past-due invoices, but it’s even worse to hold off on hiring, upgrading equipment or paying your vendors because of a cash-flow pinch. Still, client relationships can be fragile. Repeated phone calls and late fees don’t always go over well with the people who hire you.
Here are a few ways to make sure you get paid as quickly as possible for your hard work.
In summary, the six ways to get invoices paid on time are:
- Accept multiple forms of payment
- Create accurate and easily understandable invoices
- Be timely – send invoices fast or automate
- Establish penalties to discourage late payment
- Automate payment reminders
- Incentivise early payments.
Predictable revenue keeps you focused on the task of running and growing your business. Simply put, positive cash-flow keeps the wheels greased.