Here are a few simple adjustments and additions that you can make to your invoices, which will speed up the payment from your clients and ensure that you get paid.
For most businesses, getting paid on time is important, as payment delays can lead to serious disruptions in the cash flow. If you are searching for a way to speed up your payments, remember that the most effective solution is often also the simplest one.
Did you know that the invoice which you send to your customer is the most important form of communication in getting paid on time? By making small tweaks, additions and adjustments to your invoices, you can ensure faster payments from your customers and also make sure that you always get paid for your services.
1. Add “Please” and “Thank You”
When it comes to your invoices, good etiquette can maximize the probability of getting paid. By simply adding a “Thank You” or “Please” to your invoice, you can increase the likelihood of getting paid by 5%. Making this change to your invoices could result in adding thousands of dollars to your account.
2. Customize the invoice
Make it a point to ask all your customers what they actually require on their invoices. Though this will take time, it can save you time and money, as you will not have to re-invoice a client because of incorrect/missing information. For example, you could ask if the customer requires a general description or a detailed breakdown of the services.
3. Use “days” instead of “net”
Did you know that using the term “days” over the term “net” can actually help you get paid on time? Though terms like net 60 or net 30, make sense to you, customers may not always understand what they mean. Make it simple for your customers by including a phrase like “payment due within 35 days”. This will help your client to immediately identify the time frame. Avoid terms like “due upon receipt” which may confuse the customer about when the invoice should be paid.
4. Charge an interest fee
If you haven’t been charging an interest fee, then it is time you did. Including a late fee, will urge your customers to pay their invoices on time. Also include the fee percentage and when it is applicable.
5. Provide incentives
Apart from late fees, adding an “incentive” for early payments can ensure that your customers pay you ahead of the deadline. You could consider rewarding your customers with gift certificates, credits, merchandise or discounts. Such incentives will not only ensure quicker payments, but will also increase customer loyalty.
6. Incorporate an electronic payment option
If your customers can instantly access a payment link on their invoices, then they can instantly make their payments online. Electronic payments are not only a faster method of getting paid, but it can also help you save 40% more than using paper checks. You can also eliminate fraud.
Interested to know more?
- Why Is Cashflow Management Important For Your Business?
- Top 5 benefits of outsourcing accounts payable services
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