As a small business owner, you probably know the frustration associated with waiting, seemingly endless stretches, just to get your invoices paid. Your clients probably have good intentions but sometimes it may slip their mind, they may not have the money available or there could be a host of other reasons why they haven't paid you.
So what strategies could you use to motivate those late paying customers to pay on time…Keep reading to find out more!
Tips for Getting Paid
1. You could set it up so that clients are able to make payments online. Today, nearly everyone prefers the ease and convenience of online payment. This eliminates the hassle of going to the post office and thus, given how easy you've made it, they may be more inclined to pay sooner.
2. Don't be slow when it comes to getting those invoices out. The sooner you send them, the fresher it'll be in people's minds and studies have shown that this does, in fact, impact the speed at which people submit payment.
3. Have a late fee policy. This simply makes sense. If clients understand that the longer they wait beyond the due date, the more it will cost them, they'll make more of an effort to send the money out.
4. Provide reminders. We all have busy lives, and as such, things really can slip our minds. Offering customers a reminder or two certainly can't hurt.
5. You might also offer discounts for early payments. As with the late fee system, this gives people a definite incentive to get that check in the mail.
You depend on money from invoices to keep your business afloat. If however, you do happen to be going through a slower period, First Union has financial solutions that can help. With lines of credit, short term loans and even invoice financing, we can get you the cash you need to weather the harder times. Call today and let's get started.