6 small business tips to get your invoices paid fast

Cash is vital for small businesses – to pay their staff, to purchase stock, meet their tax obligations and explore new opportunities.  A lot of our small business clients experience cash flow troubles due to their accounts being settled late.

We all know that one of the most awkward and uncomfortable situations in business is having to chase up late payments on a bill or invoice. To avoid having to deal with unnecessary conflict, here are 6 tips to get your clients to pay their bills by the due date or even earlier.

Negotiate clear payment terms upfront

It’s vital to have a written agreement between you and the client that clearly outlines terms, deadlines, fees and any other important information. This ensures that you and the client have the same expectations when it comes to when invoices are sent and how long they will have to pay. You can specify certain requirements like ‘due upon receipt’ or ‘total amount due within 10 business days’.

Use polite invoice language

There is no substitute for professionalism and that includes the language you use in your invoicing. Always remember to use your manners by wording invoices politely with a ‘please’ and ‘thank you’, as this is proven to build stronger relationships with clients.

Provide an incentive for early payment

This could be a percentage of the total invoice amount for example, a 2% discount on early payment may entice a client to pay the invoice earlier.

Penalise late payment

To encourage prompt payment, you may want to add a percentage fee for late payments for example, a 2% fee on invoices not paid within 15 days.

Be flexible with payment type

While some clients want to pay by credit card or PayPal others prefer direct bank transfers.

Use invoicing software

Sending invoices in the mail takes too long, runs the risk of getting lost and adds to the expense of billing your clients. Using invoicing software like Cashflow Manager, allows the client to get the invoice to their email inbox straight away… And if you use the mobile invoicing app for Android and iPhone you can even invoice on the go.

Comments (3)

  • SPEC INDIA Reply

    Perfect tips shared to make the payment process quick. Thanks for sharing this here with us Rebecca.

    30/01/2018 at 10:08PM
  • Peter ROBERTS Reply

    Regarding you invoice manager app, I have been using this for about 8 to 10 months and had it loaded on my tablet first. This program stopped working and would not sync. Tried it on my phone with similar results. I travel all over Australia working and if this app would work properly on my android systems it would be great. Member no. 278362 if you would like to see my records re this.

    I have also complained re the invoices which are made on the android devices firstly sending and printing correctly. When I have had to resend these invoices the printing and visual you get is several lines printing over each other up to 10 times.

    I am still waiting for a response to these problems after contacting you office about6 weeks ago……..yet noone has been in contact re the issues.

    If you cant tell I am not happy.

    19/06/2018 at 6:39PM
  • Div Jangid Reply

    Get invoices fast is such a pain for me. Thanks for sharing this Rebecca.

    09/08/2018 at 2:56PM

Leave a Reply

Your email address will not be published. Required fields are marked *