Solid Methods You Didn’t Know You Could Use to Get Paid On Time
Getting paid on time is the bane of every small business owner. And it can be the difference between solvency… or not.
Being able to get your clients to pay on time is an essential skill any business owner needs to have. It keeps your cash flow healthy, so you don’t find yourself in financial trouble. It’s one of the first things you need to consider if you’re having cash flow problems.
When you’re thinking about how to get clients to pay, there are probably a few standard methods you come up with. Maybe you put late payment terms on your invoices or make sure your payment terms are clear. But there are also some methods you might overlook that you don’t want to ignore.
But there are also some other methods to get paid on time you might have overlooked.
Automatically Taking Payments
Between sending out your invoices and waiting for them to be paid, you could be waiting a month or even longer, depending on your payment terms.
Many of your clients might like having longer to pay, but it can lead to them forgetting to do it. If they’ve got the funds to pay when you first invoice them, it’s likely they won’t mind paying straight away.
Explore the possibility of setting up automatic billing for your clients, so you can have the funds deposited right away. Not everyone will be open to this, but many people prefer the convenience of it to ensure being paid on time.
Factoring Your Invoices
Invoice factoring is a technique that can help you bridge gaps in your finances, which can also help to ensure that clients pay up. When you use this method, you sell your invoices to a factoring company, who give you an advance on the value of the invoices.
They will then help you out by collecting on those invoices to make sure your clients pay. Many businesses have benefited from invoice factoring, which means they don’t have to wait around for payments.
Instead of waiting for possibly months for your money, you can free up some of the cash right away.
Improving Communication
There are some things you might not realize you can use to make sure you get paid on time. Something like improving communication with your clients can have a range of benefits, including helping to encourage them to pay their invoices.
Opening up communication means that you can be there to answer any questions when they need to ask them. If they have any problems, they can bring them up with you as soon as possible.
Having a number of communication methods and being as available as you can will help.
Keep Things Running Smoothly
If you do have a client ask you a question, you want to be able to answer them right away. Using cloud technology and mobile solutions makes it easier to do this and to smooth the overall running of your business.
You have access to the information you need, and the ability to edit documents and invoices when necessary.
Storing all that you need in one place helps to keep everything organized and make it easily accessible too.
Think about the wider context if you want to make sure you get paid on time. Several types of solution could help you.
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