How To Get Your Invoices Paid Faster

When running a small business, a steady cash flow is one of the most important factors. This ensures that you constantly have a buffer of money to cover any unexpected expenses that may arise. Regular cash flow also assures investors that you are able to efficiently manage your finances. This is why it is important for invoices to be paid in a timely manner, so that your business is not left in a deficit. 

If you are struggling to get your invoices paid on time, here we share our top tips to speed up the process and make sure your clients are making punctual payments. 

Send clear and simple invoices

When designing your invoice, keep it simple and make sure that all relevant information to make a payment is easily visible. Don’t overcomplicate the design as this could make it difficult for clients to find the necessary information. The key information that they should be able to see immediately is the total amount due and the payment deadline.

Set clear expectations

Before you start any work for a client, you should discuss your payment terms and how your invoice process works. Clients should be clear about when payment is expected, how they can pay and what your policy is if payments are late or missed. Doing this at the beginning of the project ensures that there are no surprises down the line.

Send your invoices out as soon as possible

You should invoice for your work as soon as it is completed. The sooner you send the invoice, the quicker you can receive the payment. It is advisable to send the invoice along with your final piece of work which means that the client has it at the earliest possible opportunity. 

Doing this also ensures that the invoice is fresh in the client’s mind. Sending your invoices out as soon as possible is a good practice to get into as if you leave it until later it is easy for you to forget to send it or easier for the client to forget to pay.

Send follow up for late payments

If you are owed money for completed work, you are responsible for following up with any late payments and making sure that your invoices are paid. When payments become overdue, you should send a brief reminder to the client letting them know that the payment is overdue and reminding them of the payment details. This is also a good chance to let them know the different payment methods accepted. It can seem like a hassle, but it is your responsibility to keep following up until the payment has been made.

Be flexible with payment methods

If you want to make it easy for your clients to pay, one of the best ways to do this is to offer as many payment methods as possible. Consider online, mobile payments, cash, card, the option to make a deposit or repay over installments.The more flexible that you can be, the quicker and easier it is for the clients to pay and the quicker you can receive payment. 

For clients that you work regularly with, setting up automated payments can make things easier for them and quicker for you. A client can set up an automatic payment so that their account is charged automatically on the same day of each month, guaranteeing that you will be paid on time.

Implement late fees

Introducing late fees if clients miss payment deadlines will make it more likely that your clients will make payments on time. If you choose to do this, make sure that any penalties for late payment fees are laid out in your policy up front before starting any work with the client.

Request a deposit

Rather than waiting for full payment at the end of the job, requesting a deposit upfront can ensure that you are paid for your work – especially if you are carrying out projects which span multiple months. This deposit can also help you during the project so that you are not out of pocket if you need to cover any expenses along the way, leaving you with sufficient cash flow to cover other areas of your business.

Always be polite in your interactions with clients

It can be frustrating dealing with clients who are not paying on time. However, acting out can prevent future business opportunities. Always give clients the benefit of the doubt when it comes to late payments and treat them politely and respectfully. If a client has a good experience with you, they are more likely to use your services in the future and recommend you to other people.