How to Get Invoices Paid

Cash flow is important to any small business, as money is the gear that keeps the whole operation running; but there maybe a wrench in the operation if your customers refuse to pay for your goods and services or pay invoices late. The obvious way to keep your cash flow intact is to get paid in a timely manor. There are plenty of tips and tricks that you can find online to help you get your invoices paid so we’ve put together a list of the most effective of them all.

Foremost, it is important to make your payment policies clear. Your customers cannot be held responsible for late payment if they were never aware of the terms of service. This means that all your customers should know what your goods and services cost before you provide them. They should also be aware of when payment should be completed. Using phrases like net30 may sound fancy, but many small businesses agree that their customers pay quicker when simple language such as payment due in 30 days is used. This way, there is little room for miscommunication.

Secondly, it is a good idea to treat customers with respect. Threatening language may be tempting to use, but as the saying goes: you catch more flies with honey instead of vinegar. No one likes being told what to do, and if you treating or make demands, there is a good chance that invoice will never be paid, or worse, you will loose that customer’s business forever. Remember to mind your manors and thank your customers on their invoices for their business. If they are late paying an invoice, the first and second notices should be personal such as addressing it to the person who pays the bills. Also, do not accuse them of purposefully not paying. Instead, you can suggest that the invoice simply slipped through the cracks.

You should treat all customers equally. Holding all your customers responsible for the same payment terms is important for one reason: it is easier on you. With less for you to keep track of, it will be easier to know when someone is late paying an invoice; but if multiple customers have different terms, such as some payments due in 40 days and some due in 60, it maybe easier to get lost. It is important that you stay on top of all late invoices, as most customers will not pay a late invoice if they think it has slipped through the cracks. Also, the more time that has passed, the less likely you are to get payment for goods or services that they received.

Of course, the best way to ensure payment is not to deliver goods or services without full payment. If it is a large or costly order, it is even advisable to require a deposit (usually around 30%) before you even start the project. Do not be afraid to ask for payment just so long as you do so in a courteous way. Also, do not be afraid to let your customers pay you. This entails answering yes whenever they offer to pay and also offering multiple forms of payment such as checks and credit cards.

Finally, the best way to get invoices paid off quickly is to offer small discounts to those who do so. Some companies offer 1% – 2% discounts off the total bill for customers who pay it off within the first week. If it is a recurring fee, think about offering the same discount to those who pay before the term starts.