Does the thought of following up on unpaid invoices make you want to run for the hills? Do you picture yourself as Dog the Bounty Hunter every time you come across a late paying customer? Maybe you don’t mind the awkward conversation, but have seen the blow to your cash flow firsthand. You don’t have to accept late payments as a business owner. Here are 3 ways to put your business in control:
Make it Painfully Easy
Let your customers pay with what they are more likely have on-hand – credit cards! Providing multiple payment options ensures your customers can choose their preferred payment method. After all, you don’t see many people carrying around cash or checkbooks these days.
And it’s not just how, it’s where. Put invoices right in the inbox with electronic invoicing or set up an online payment interface. By reducing the need for phone calls, office drop-ins or snail mail you can help your customers pay more quickly.
For ultimate convenience, let customers set up auto pay to debit straight from their account on each payment schedule.
Encourage Action with Automatic Reminders
Give your customers the benefit of the doubt. It’s not that they don’t want to pay, but a friendly reminder delivered at the right time can make the difference between an on-time or late payment. Set up your recurring payments to include reminders on whatever cadence you like. Consider one day before the due date, on the due date, or one day after the due date.
Replace Late with Early
Give your customers a reason to pay ahead of the due date with incentives or an update to your policy. If your business can collect payments before the rendered service it can reduce the headache of no-shows or trying to get paid after a service is complete. Another option is to encourage on-time behavior by offering a small discount on an upcoming product or service.
Whether avoiding a potentially uncomfortable conversation or improving cash flow for your business, one thing is for sure – you have better things to do with your time than chase down unpaid invoices. Instilling positive habits in your customers and letting technology work for you will help put you back in charge of your day.
Get more tips in our free eBook, Your Ticket to On-Time Payments.