Small business owners and freelancers rely heavily on cash flow. A couple of delayed payments can easily cause a chain reaction leading to more financial problems for you. That’s why it’s important to have protections in place to ensure that clients pay bills quickly on every project. At BillGrid, we believe that the following methods can help you get your payment quickly.
- Send out Invoices Immediately- There are several small business owners and freelancers that delay sending the invoice. They allow the invoices to pile up and until their have to send out all of them at once. That doesn’t just delay payment, but it also creates a hassle for you.Instead of following this practice, send invoices out as soon as the work is done. This would ensure that the clients get them early and you can receive your payments early. You can use an automated invoicing system to generate them and send them out to clients as soon as the job is done.
- Go Digital- Paper invoices really have no place in this day and age. They only delay the entire payment cycle. Paper invoices also take longer to process and can even get lost in the mail. Sending an online invoice will ensure that it directly reaches the client when the job and the need to pay is fresh in their mind. Also allows you to see client activity to know if the invoice has been viewed by your client.Online automated invoicing software for small businesses and freelancers will also ping the clients at regular intervals. In essence, they’ll nag the client for payment instead of you having to do the task yourself. They’re very effective in getting the clients to pay the bills quickly.
- Send Reminders – Most business owners hesitate to follow up after sending the invoice. They don’t want to nag their clients or seem desperate. However, it’s a good idea to follow up. You should check the list of invoices you’ve sent out and look at the ones that are unpaid. Send reminders to those clients who haven’t paid you yet.
- Incentives and Penalties- It’s always a good idea to offer discounts or other such incentives to clients that pay early. That will encourage them to pay promptly in order to take advantage of the offer. You shouldn’t hesitate to implement penalties either.For example, if you’ve agreed that payment should be made within two weeks of receiving the invoice, add a penalty on payments received after the due date. You can charge an interest on the amount due to be paid. This would encourage people to pay money before the deadline.
- Online Payments- It’s also a good idea to offer your clients multiple online payment options. For example, writing a check can lead to delays but if you offer the clients the option to pay invoices online, by various payment options such as PayPal or Credit Card that will higher your changes to receive payments promptly.
These tips will help you get payments on time. If you have any questions about our online invoice billing software and services, you can contact us at BillGrid.com and we’ll get back to you as soon as possible.