Receiving payment for goods and services is a process that has to be efficient for any business, but it is especially important for new and small businesses that are reliant on speedy payment in order to keep cashflow secure at a critical time for the growth and sustainability of the business.
Unfortunately, for many businesses, late payment is a fact of life. So, what can you do to ensure that you receive payment in a much more efficient, painless, and timely manner?
Be Proactive with Signed Agreements – It is better to be thorough and above board, even if you have a friendly relationship with a client. In order to ensure there are no future disputes it makes sense to put together an agreement that sets out the work you are to deliver, the terms of payment and terms of late payment or non-payment.
Short Payment Terms – The standard terms for payment on an invoice is usually 30-days. If you are worried about being paid quickly it might be best to set shorter terms. This could be in the form of 7-day payments, or even asking to be paid immediately. Always ensure that you invoice as soon as a project is completed and signed off.
Offer Payment Options – By offering a number of electronic payment options to a client you are ensuring that they are more likely to pay quickly using a service that they use and trust. By just allowing bank transfer for instance, you could be preventing them from quickly using a service such as PayPal that they have instant access to.
Be Flexible with Good Customers – Sometimes a late payer will have a credible reason for not being able to pay on time. If you have a good relationship with a client who usually pays on time, be proactive and give them a call. Having an honest and open conversation can help you both to set clear payment timelines and maintain a healthy relationship for future work together.
Whatever route you choose to try and elicit a faster payment from clients, it is hard to keep track of financial ins and outs the larger your company grows. Using a professional service to help you keep on top of all admin tasks, as well as a service that will chase payment from clients and check on late invoices, can help to keep that side of the business running smoothly whilst you concentrate on the goods and services that make it a successful venture.
If you would like to find out more about Keepoint and how we help small businesses to maximise their potential, contact us today and we’ll be happy to talk through your specific requirements and what we can help you with. You can email us firstname.lastname@example.org or pick up the phone and dial 08000 11 66 35 and a friendly member of our team will be here to assist you.