6 ways to get your invoices paid faster
Want to improve your cash flow? Encouraging your customers to pay your invoices on time could help create stronger cash flow in your business. Here are six simple actions you can take, which may help increase the chances of getting your invoices paid promptly.
When you acquire a new customer, it pays to check with other businesses they’ve dealt with to ensure they have a good payment track record. You could do this by asking your customer to provide two referees they have previously done business with – then give these people a call and ask whether or not their invoices are getting paid on time.
Many businesses give their customers a set time period between when the goods or services were provided and when payment is due. These are called payment terms and should be established upfront to avoid any misunderstandings once you start doing business.
Be on the front foot with your customers and invoice them as soon as you can. One way you could do this straight after you’ve made your delivery or finished a job, is to use our handy business invoicing solution in online banking1.
It lets you generate and send invoices on your phone or laptop – and when linked to a transaction account can help with invoice reconciliations.
In larger businesses, the person who you deal with on a day to day basis can be different to the person who does the account payments. Make sure you find out exactly who you need to send invoices to, so they can approve payment without delay. Also, make sure all of the details on the invoice are correct, so your customer has no reason to come back with questions, which can delay payment.
With the Westpac Biz Invoice tool you can set up customer details in advance, to avoid making mistakes drafting and sending individual invoices.
It’s can be a good idea to feature all the payment options available, on your invoices. They might include:
Please note that if linked to a foreign currency account, the Biz Invoice tool mentioned above will not calculate GST or any tax that may be required in your customer's country. Payment of foreign currency account invoices can only be made using direct deposit via international transfer.
Be on top of when your invoices are due and call customers directly if payment dates are passed. With the Westpac Biz Invoice tool you can set up automatic payment reminder emails, to save you time chasing late payments.
These six simple actions may help you receive payments faster, which can lead to an improvement in cash flow. And remember, you want to develop strong relationships with the people who pay you – so a warm ‘thank you’ from time to time for prompt payments can only help strengthen that relationship.
1. Westpac’s products are subject to terms, conditions and fees; and eligibility criteria may apply. Before making a decision, read the disclosure documents for your selected product or service, including the Product Disclosure Statement and T&Cs for Westpac business bank accounts, business savings accounts, merchant services, foreign currency accounts and online banking, by clicking the above links and consider if the product is right for you.
The information in this article is general in nature and does not take your objectives, financial situation or needs into account. Consider its appropriateness to these factors; and we recommend you seek independent professional advice about your specific circumstances before making any decisions.