Are you struggling with cash flow because your clients like to take forever to send payment? We know all to well how frustrating it can be when your clients fail to pay invoices on time. So, here are four methods you can put in place to get your business paid faster.
Project Deposits and Installments
Get a deposit for your project upfront and spread the rest of the cost across several installments. You can tie the next payment to milestones, such as finishing a project phase, so that you’re continually getting paid for the work you complete.
Net Zero Payment Terms
Some companies try to push for payment periods that reach net 90 or even longer. Your business may not be able to float that amount for multiple months, plus it’s hard to grow when you’re endlessly waiting for your funds. Net zero payment terms eliminate this problem. Consider the change in terms on a client by client basis. Some buyers may need to operate on net 30 or greater terms for a good reason, so weigh the pros and cons of switching carefully.
Push for Online Billing
Taking time out of your day to handle paper invoices and cheques, as well as accepting cards, is a big productivity drain. Your clients also face massive inconvenience. They have to account for running this errand when their schedule may already be overfilled.
Online billing makes the entire payment process smoother. You won’t have clients pushing back their billing dates because they simply don’t have the time to stop by the office to make a payment. Your employees can turn their attention to other urgent tasks rather than getting caught up in an easily automated process.
Sell Monthly Retainers
Wouldn’t it be great if you could create set and forget payments? You wouldn’t have to put together an invoice and send it over to your clients. The cash just arrives like clockwork every single month. A monthly retainer with recurring billing gives you exactly that, ensuring clients pay invoices on time.
Every business has their own non-paying client horror stories. However, sometimes buyers are slow to send money because the payment process stands in their way. These strategies help you overcome any friction in the process.