You’ve done the work, delivered the product on time and invoiced the customer. It’s now been 40 days and you’re still waiting for payment. It’s time to chase the client but in reality, there are a few things you would like to do less.
The truth is that you are not the only one. According to Xero, the average for a UK small business 30-day term invoice to be paid is almost 40 days… That’s almost 2 weeks late!
Let’s face it. Chasing late payments is one of the least desirable and most awkward jobs. It’s never easy, sending emails or calling a customer to ask for money. Nevertheless, this is your business and you need to be paid for outstanding invoices.
Here are 3 top tips to help you get over or around the issue of not being paid on time.
Don’t think you’re being rude.
For starters, you’ve done the work and your client is happy, so you’re entitled to what you’re owed. Secondly and as importantly, you deserve to get paid on time. You’re not a bank and you don’t have endless cash reserves. If you don’t get paid, you simply can’t pay your bills.
With all that in mind, don’t think you’re being rude by chasing payments. It’s the customer who is being unprofessional for not paying on time! Plus, on top of that, you are fully within your rights to ensure you settle those invoices.
Set terms and expectations early on.
Terms of payment are one of those things that every business owner will have to establish with each client. Presenting those terms as early as possible will avoid any uncertainty or awkwardness further down the line.
Not sure what terms to apply? You can totally set your own. You can even request payment upfront, although this might be easier said than done.
You could ask for a deposit – for instance, 50% of the total project cost before work begins. That way, you’ve got a little insurance behind you, should payments be delayed in future. Or you could simply go for ‘standard’ 30-day terms. It’s up to you.
Pick up the phone.
If you’ve already emailed several times, you’ve become increasingly assertive and you still haven’t been paid – pick up the phone and call your client. Sometimes having a chat is all it takes to ensure payment. Keep on top of them with regular calls.
Or, if you really can’t face the task, hire a freelance virtual PA to do the chasing for you. Sometimes having someone else do the chasing adds more authority and credibility to your business and gets clients worried about not paying.
Offer a seamless financing option to your customers.
Whether or not you don’t feel too comfortable calling or sending strong emails to your customers, you still need to collect money owed. You don’t want customers’ negligence to harm your business.
Protect your business and cashflow with an integrated finance solution, ensuring you can cover fundamental operational costs and run your business on your terms.
CreditDigital’s platform allows you to offer your business customers, an instant finance option upon invoice or at checkout. Your customers will have the choice to spread the cost over 30, 60, 90 days, or even more if need be, whilst you get paid in full, immediately.
Put an end to late payments and sign up today!