{"id":3348,"date":"2018-10-25T14:59:19","date_gmt":"2018-10-25T11:59:19","guid":{"rendered":"https:\/\/www.lending-express.com\/blog\/?p=3348"},"modified":"2019-02-17T15:31:18","modified_gmt":"2019-02-17T13:31:18","slug":"10-hacks-to-get-your-invoices-paid-faster","status":"publish","type":"post","link":"https:\/\/www.become.co\/blog\/10-hacks-to-get-your-invoices-paid-faster\/","title":{"rendered":"10 Tips to Get Your Invoices Paid Faster"},"content":{"rendered":"

Even if you have work coming in and are invoicing your customers regularly, your business could be at risk if your customers don\u2019t pay you on time. A 2017 economic report by Sage showed that late payments cost SMBs globally about $3 trillion. With 1 in 10 invoices being paid late, this is a big problem that can threaten an SMB\u2019s survival. <\/span><\/p>\n

Invoices mean nothing unless they translate into revenue and become deposits into your business bank account.<\/span><\/p>\n


\n<\/span>How to get an invoice paid on time:<\/span><\/h2>\n

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Easy, follow these 10 tips! We\u2019re about to take you through how to get invoice paid on time, following these tips, you can help increase the odds of your customers paying up on time, avoid a late invoice payment and ultimately increase your monthly revenue and cash flow. The <\/span>bottom line<\/b> is something all businesses should have or at the very least, consider.<\/span><\/p>\n

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Further, it will save you the time and money of having to chase up payments, which could eventually result in hefty legal fees should large debts pile up.<\/span><\/p>\n

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These suggestions are ranked in order from a gentle approach to more firm tactics. It\u2019s a delicate balance when asking customers to pay. On the one hand, it\u2019s best not to alienate customers or ruin good relationships, but on the other hand, it\u2019s imperative that you get paid timeously for your product or services. We suggest starting out with the gentler methods and then progressing to firmer methods if necessary.<\/span><\/p>\n

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1. Simplify payment <\/span><\/h2>\n

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The easier you make it for customers to pay you, the more likely they are to do it on time. With cloud-based technology, you can now send customers instant, automated invoices directly to their computers or mobiles. Even better is if payments can be made immediately through the same system, so customers can pay you on the spot, as soon as they receive your invoice. <\/span><\/p>\n

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It\u2019s also a good idea to offer multiple, easy payment methods so that customers can choose the method that works best for them. <\/span><\/p>\n

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2. Invoice on time<\/span><\/h2>\n

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If you want to be paid on time, you need to know when to invoice a customer and make sure that you\u2019re on time!<\/span><\/p>\n

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Here\u2019s when to invoice a customer: Invoice right after your work or project is completed, or according to your specific payment terms. You\u2019ll be fresh in the mind of your customer, who will then be more likely to pay immediately. If your project was completed 3 months ago, it might take your customer a while to remember you and make payment.<\/span><\/p>\n

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How far back can you invoice someone?<\/span><\/h3>\n

You\u2019ve forgotten to invoice – don\u2019t worry it happens to the best of us, but if this is a common occurrence, then think about getting yourself a good bookkeeper to keep track of things, like Intuit Quickbooks. <\/span><\/p>\n

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In short, if you\u2019ve forgotten to invoice a customer, you can issue an invoice NOW, unless more than 6 years have passed (which we very much doubt have). If it\u2019s been more than 6 months, we would strongly recommend communicating your sincerest apologies for the delay and make sure that you have all the information (evidence) such as purchase order, contract, quotes etc. so that they cannot dispute it. <\/span><\/p>\n

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Note to self:<\/b> make sure to keep long and well-organized records of all orders and payments in and out of the business<\/span><\/p>\n

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3. Nurture customer relationships<\/span><\/h2>\n

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Nurture a good relationship with your customers. If they only hear from you when you want to be paid, they may feel disconnected from you. If you contact your customers frequently, you can build a relationship and become more than just an invoice lost in a pile of invoices.<\/span><\/p>\n

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You also need to make sure that you\u2019re nurturing this relationship with the right person in the customer\u2019s business, particularly if it\u2019s a large company. If you\u2019re communicating with the wrong person and sending your invoices to the wrong person (yes, that happens often!), you\u2019re less likely to get your invoice paid on time. <\/span><\/p>\n

4. Use a retainer model <\/span><\/h2>\n

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Automated payments are your best solution. If you can get your customer to set up automatic, recurring payments, they\u2019ll never be late with payments again. One way to ensure this is to set up a retainer model for big projects. The customer will know what to expect, as there will be set amounts due at set intervals.<\/span><\/p>\n

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5. Create detailed invoices<\/span><\/h2>\n

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Some customers don\u2019t pay invoices on time simply because the invoice isn\u2019t informative enough. They may not remember the details of their purchase or may not know how to pay you.<\/span><\/p>\n

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Make sure every invoice is as detailed and transparent as possible, including the following information:<\/span><\/p>\n