Simple Ways to Get Clients to Pay Their Invoices Faster
Friday, 15 May 2020

 Are some of your clients terrible when it comes to paying their invoices? This is a common problem that a lot of businesses experience. Asking for payment can be an awkward topic, especially when you feel like you are chasing clients all the time. 

But the good news is that there are some ways that you can get your clients to pay faster. From scheduling payments ahead of time to creating late fees for unorganized clients, there are some things that you can do today. So, let’s dive in and take a look at your options.

Agree on an Upfront Payment

If you are working on a large and upfront project, you may need the funds sooner rather than later. A good way to get some money from a client is agreeing on an upfront payment. For example, you may ask for half of the fee to begin with. This is going to give you a good foundation. Then you can receive the final half when you have completed the project and they are happy with it. This is a good way for you and the client to be happy. Plus, it can make them more aware that they should pay a business in advance and help for future projects.

Confirm a Regular Payment Schedule

Irregular billing is not great for anybody. You have to send out invoices all the time and your clients do not know when to expect them. This is the perfect opportunity for them to delay payments without even meaning to. It is important to create a regular payment schedule that everybody is familiar with. You will know when your clients will receive the invoice and they can know when is best to pay. There are no miscommunications and everybody knows where they stand.

Use Appreciative Language

This may seem like an obvious tip but it is once that businesses often forget. Make sure that you are appreciative and thankful for your client’s business and for taking the time to look at your invoice. Being thankful can really go a long way and customers enjoy being praised. Not only can this mean they pay you faster, but it can also secure their business for the future. It has the effect of reinforcing your relationship. All you have to do is send them a nice message or edit your invoice to include a ‘thank you’ note.

Offer Discounts and Late Fees

From the beginning, you should set out to be clear about billing and what is expected with your invoicing. For example, you can have rules about payment. This includes offering small discounts for those customers that send you early payment. This does not have to be a lot but it can be a huge incentive for clients to pay you early. Anywhere from 2 to 5 percent can be a good deal if you have a large project with them. Just make sure you factor it into your prices.


In addition, you can even charge late payment fees to clients. This may seem mean but it does help to ensure clients pay you on time. The last thing they want is to have to pay you even more money. You can be reasonable and add on a late fee for every couple of days they do not send payment. Just make sure that they fees are communicated in your contract before you begin work. You cannot incorporate them without the client being aware. Otherwise, this is going to backfire and you may lose business.

Automate the Process

Let’s not forget that one of the worst things about customers making late payments is chasing them. While you can live without payment for a couple of days, most business owners and staff feel uncomfortable asking them for payment repeatedly. This is especially true when they assure you they are going to pay soon. 

One of the best ways to remove this awkwardness for everyone is to automate the process of invoicing. In other words, you can use invoicing software. This is going to do all of the invoicing for you, sending it out on a scheduled date and informing your client of what they have to do next. Just make sure you research the best software for you. For example, you can read the FreshBook invoicing review

Software invoicing makes the process more efficient and less time-consuming. In addition, there are features that include sending notifications and reminders to clients. You no longer have to email them if they pay late. 


 

 
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