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. It’s a good idea to do this straight after you’ve made your delivery or finished a job.
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.
It’s can be a good idea to feature all the payment options available, on your invoices. They might include:
Keep on top of when your invoices are due and call customers directly if payment dates have passed.
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.
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