Late payments are the worst. After pouring all your time and effort into working on this project, you end up waiting a few more days for the payment. Then the days turn to weeks, and you end up frustrated and stressed with the pending overdue balance in your finances.
No business deserves to wait for the payment they deserve. You delivered on time, so you deserve a payment on-time too. To secure payments from your clients faster, do these 8 quick hacks on your next invoice!
1. Communicate payment schedule with your client
The best and fastest way to get your invoices paid is to communicate payment-related matters with your client or customer. Discuss a schedule that works best for them when paying for your products or services. Do they prefer it weekly, by Fridays or weekends, morning or afternoon, etc.?
With a schedule for invoice sending set between you and your client, you won’t have to postpone your invoice for a few days in fear of disturbing or taking the client by surprise. You increase your chances of getting paid faster, and you won’t have to wait for late payments to get your finances in balance again.
The ideal schedule for sending the invoice is always after the project is completed. If you wait for a few days before sending the invoice, the client may not see it urgent to pay you, and that’s where the series of late payments begins.
For long-term projects that would take a huge sum of money, you can discuss milestones with your client, where you can set deadlines for payment when you reach a certain percentage of the project or required number of products.
When onboarding new clients or customers to your business, make sure you brief them on your payment terms too. This way, expectations and concerns are cleared, and you won’t encounter any problems when the time for payment comes.
2. Use invoice templates to speed things up
Coming up with details to include on your invoice may be both time-consuming and confusing. What details should you include and NOT include? Include too much and you may overwhelm your client, but miss out on the important details and you’ll confuse your client.
And let’s not get started on coming up with a simple yet classy and professional design. It sounds simple, but with people who don’t have much designing background, it’s a problem on another level.
To save yourself from the stress of making an invoice, use an invoice template of pro-forma invoice instead. There are plenty of free templates online you can use for your invoices. The designing part of the invoice is also done for you. You only need to customize it with your product details and prices, and you’re good to go!
3. Show appreciation for fast payments
Instead of scaring your clients about late payments, why not encourage them to pay earlier and faster through rewards? For instance, a simple email thanking them for the early payment is enough to let your client know you appreciate them.
If your client has been doing business with you for a long time and you’re celebrating a milestone with them, you can give them a small discount to show your gratitude.
When you focus more on the positive things, it does the job of cultivating positive vibes to your client too. If your client is happy, that means faster money coming your way.
4. Implement a payment first, product/service later
If you’re having late client payments, perhaps it’s due to your invoice sending schedule. Instead of sending an invoice after completing a project, you can try to ask for an upfront payment first. You can demand the whole payment before working on the project, or down payment before the project/service gets delivered in full.
Don’t feel bad about implementing a payment first, service/product after. You deserve to be compensated in exchange for your hard work and skills. Some clients may not agree to this, but on the bright side, you avoid stressing yourself with overdue payments.
5. Use clear and simple language
Like with content marketing, using a clear, conversational, and simple language will get you the results you want – in this case, to get paid faster. Complicated terms like Net 30 would make you sound confusing than professional. Instead, you can indicate due in 30 days in your invoice to let your client know the payment’s due within 30 days.
You don’t want your clients receiving your invoice and spending more time decoding your invoice like a historical puzzle on a Dan Brown novel. As business owners, you know that when a client or customer doesn’t give plenty of thoughts to things they don’t understand at first glance.
6. Use the recurring invoice for monthly billings
For clients that order the same products or services for the same amount every month or week, you can use the recurring invoice feature of your invoice provider. In the long run, you can invite your client to a calendar event reminding them of an invoice due. This is a great way to stick to a consistent sending schedule.
7. Include as many payment methods as possible
Keep in mind that your client or customer can be at any place when they receive your invoice. To “encourage” your client to pay you as soon as they receive your invoice, include as many payments as possible, ideally those that are easy to process on mobile.
Allow online payments on your invoice so your client can send you the payment in a few clicks. Other payment options to include are through credit or debit card, cheque, bank transfer, or PayPal.
8. Include details for late-payment penalties
For clients who love paying late, you can include late-payment terms on your next invoices. For instance, you can implement a two-percent additional interest to the total amount if payment hasn’t been done within the due date.
As much as it sounds negative, this disciplines your client into sticking with a consistent pay schedule. It also urges your client more to pay within the deadline next time.
