It is estimated that in the UK 50,000 businesses become insolvent each year, partly as a result of not being paid on time – and in some cases, not being paid at all. It is critical that you make sure clients pay you on time, so here are some tips to help you achieve this goal.
Establish Payment Terms
Set water tight terms of payment straight away with your customer and make them very visible on every invoice. Sometimes your client can make the wrong assumption about payment terms. They may think you operate on a net 30 basis or require payment on specific days. Always make it clear what they need to pay, when they need to pay it and whether there are any penalties for late payments and then display it obviously on each invoice. This will help to avoid customers paying late simply because they weren’t sure when they should pay.
Run credit checks on new customers so you can determine how likely they are to pay invoices on time. Here at Swift Resolution we offer a credit checking service that could prevent problems later on after setting up new business relationships. Similarly, if you suspect an existing customer may be having problems paying your invoice, check their situation too.
Consider offering payment plans
Having a good working relationship with your customers can be a big advantage. It builds mutual trust and respect, and it also makes it a lot more fun to work with them. So, you may want to consider payment plans to make it easier for your clients to spread their costs and maintain their repayments to you. This also spreads out the money you have coming in so you have regular, consistent income instead of irregular lump sums.
Calling your client before payment is due to make sure your invoice has been received can prevent any delay and puts you front of mind. Similarly, if payment is overdue by a week or more, pick up the phone and explain nicely and calmly that you invoiced 30 days ago. Sometimes having a chat is all it takes. Get a date when the invoice will be paid and call that day to check it is.
Make it easy to pay you
Accept newer payment methods can also put you at an advantage as cheques are becoming a thing of the past. Credit cards are becoming a must for all businesses. Consider accepting credit cards, PayPal payments, direct bank transfers, and other online methods that make sending money easy and safe.
At Swift Resolution, we know how difficult it can be to stay on top of everything. Make the first step to a better future by speaking to our team about your needs. Contact us on 0808 145 1886, email email@example.com or use our contact form.