![]() ![]() Talk them through the terms in person and address any concerns they have up frontĪsking for money is never nice. Make it easy for them to pay quickly by providing exactly what they needĭiscuss and agree your payment terms. Some companies require certain information on their invoice. Make a contact in their accounts department to deal with personallyĪddress all your correspondence to your contact and always ask to speak to them directly when contacting them by phoneįind out what they need from you to process the payments. Here are some tips on developing good relationships that encourage customers to pay on time: It’s much easier to ignore an anonymous reminder than a personal phone call from a friendly member of your team. You can automate a large part of your system, but a human touch can stop you running into problems later on. ![]() Strong customer relationships are fundamental to being paid on time. It could include invoice templates and calendar reminders to chase late payments. You can also set reminders for overdue payments and thank you emails for payments received.Įven if you don’t use billing software, setting up your own system will keep you on top of your accounts. This allows you to create invoice templates and automate regular invoices, so you don’t need to create them manually each time. That way, you can save on admin time and receive payments sooner. But as you grow, it’s best to develop a proper system. Develop a clear invoicing systemĪn ad-hoc invoice system might work when your business is small. It can be a good idea to explain your reasons for making changes, in case your customers have any objections.ĭoes your business send out regular company emails to clients? If so, this is another opportunity to explain your payment terms. If your payment terms have changed, make this explicit in your covering email. If you’re creating your own invoice from scratch, then make sure they’re visible and readable. Many invoice templates provide space for your terms. They need to be obvious, but not clutter the layout of the invoice. It’s good practice to include your payment terms on your invoice. Otherwise, customers could plead ignorance when it comes to payment time. If you’re introducing new payment terms or adjusting existing ones, make this very clear. Once you’re happy with your terms, it’s important to communicate them well with your customers. These shorter payment terms can also lead to quicker payments. Many invoices now request payment within two weeks. Traditional payment dates are 30 days after invoicing, but many businesses are revising this. ![]() When setting your payment terms, think about what works best for your business. Make it clear what currency you expect to be paid in. This is particularly important if you have overseas customers. This may be on a sliding scale, according to how late the payment is. What happens if a customer doesn’t pay on time? Think through how much you will charge and when. Include any information customers will need to pay you, such as your bank account details. What forms of payment you accept? This might include bank transfer, credit card or PayPal. If you pay your invoices within 30 days but your customers have 60 days to pay you, it could affect your cash flow. This is one of the most important aspects of your payment terms. When laying out your payment terms, consider the following things: This in turn affects your company cash flow. If you don’t state your payment terms or haven’t thought them through, you risk waiting longer for invoices to be settled. Payment terms are important because they allow you to state what you expect from your customers when it comes to getting paid. We also explain what to do when payments are still left unpaid. In this guide, we outline how you can get customers to pay on time. Additionally, you need to know how to chase outstanding invoices without offending customers. It involves developing a good invoicing system and setting out payment terms. Unfortunately, prompt payment of invoices doesn’t happen by default. And you’ll be in a stronger financial position to reinvest money where it's most needed.ĭoes your vision of customer payments involve knocking up a quick invoice, emailing it to them and waiting for the cash to arrive? If so, you could be in for a shock. ![]() When your business is paid on time, your operations will be more effective. ![]()
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