One of the biggest problems our clients face is getting clients to pay their invoices on time. If you don’t get the money you’re owed when you need it, you can face serious cash flow issues.
Some of our clients use clever tricks to train their customers to pay on time. Here are a few that we’ve heard of, and we can definitely recommend them:
Call after the first bill
Here’s a clever tip from one of our clients. After you send out your first invoice for a new client, give them a call.
Ask them if the invoice is clear and if it has everything they need. To them, this is a nice courtesy call and shows you’re a diligent company.
For you, this phone call eliminates any excuses for late payment. They can’t then say, “oh, I needed more information on the invoice” because you’ve already called to check. They’ll likely pay much sooner and keep paying sooner, because they know you’ll call if they don’t.
Overdue bill? Give them a call
The day a bill becomes overdue, give your client a polite call letting them know. Don’t be aggressive or condescending – just ask if anything is wrong from their end and if they need any additional information.
Getting a call like this feels uncomfortable to the client. No one likes having to admit they just forgot something when confronted directly. If they know you do this, I guarantee they’ll start making sure those invoices get paid on time.
Try invoicing more often
It may sound strange, but if you invoice in smaller chunks more regularly, you may find that your customers gets around to paying quickly.
If you currently invoice monthly, try moving chronic late-paying customers to a weekly schedule. Now, customers will end up with invoices stacking up in their inbox if they don’t get them paid. Also, the invoices will be for smaller amounts, so they feel like less of a sting when they come out of the customer’s bank account. If their cash flow is tight, they’re more likely to pay your smaller invoice first over a larger one.
Are you ready to start training your customers? What technique will you try first?
Here at Change, we’re all about positive changes to improve your business. We can provide you with that year-round visibility that’s so key to being successful in business, all while taking a stressful job off your hands. Go on, book a meeting to talk to the team at Change about your business needs.