If you are in a business since a long time, you must be well aware of the fact that some customers don’t pay you in time and your cash flow could be affected due to this reason. Maintaining regular cash flow from your customers is backbone of any business and you should take whatever steps that are possible to achieve this feat. So the basic question is what all you can do or what all steps you can take to make sure that your customers pay you in time? We tried to answer this question in quick write up below. Have a look and find out for yourself for Invoicing 101 How to Get Your Customers to Pay You
Get to the details
Make sure your invoice is as much detailed as possible so that there is no scope of misunderstanding or confusion in the customers mind. Preparing a detailed invoice also shows your professionalism towards the work and chances are pretty high that your customer will not forget to pay on time. Send the invoices well in advance so that your customer has ample time to prepare for the payment and the last moment rush is avoided.
Make the customer feel comfortable by being as much polite and courteous as possible. In fact once you receive the payment, make sure you send them a thank you mail, which not only shows your professionalism towards the work but will also ensure that you have good relationship with your customer. Regular use of the word “please” and “thank you” will actually turn your demands into requests, which your customer will like and they will make sure not to miss the payment.
Make it simple
Sometimes it’s being observed that people make difficult terms and conditions for making the payment and that come out as deterrent in paying on time. Make sure that the payment conditions that you mention in the invoice and agreement should make your customers life easy. Instead of asking them to make a check and post it at your company’s address, provide them the option of online payment, which is not only convenient but faster as well. Direct online transfer to your company’s bank account is also one of the options that you customers will like.
Late payment repercussions
In case your customer does a late payment, make sure you put some condition well in advance so that in future it serves as deterrent to them. You can do so many things such as charging interest for the days the payment has been delayed. You can also choose to suspend deliveries of the goods or services if your customer is not paying on time. These kind of conditions will make sure that the customer pays on time and there will be fear of being penalized if payment is delayed or barred.
So here we are done with our article on how to get your customers to pay you on time, do let us know how do you like the article. In case your have questions or comments, don’t hesitate to put them in the comment box.