5 Reasons Your Clients Aren’t Paying You
Are your clients behind on their invoices? Slow to pay or worse, refuse to pay their past due invoices? Here are five reasons why your clients aren’t paying you.
1. Limited Payment Options
Let’s face it, we live in a digital age, and most people aren’t going to write you a check. So, you should look into electronic payments. It’s straightforward to set up electronic payments; you will have to pay a small fee. However, Electronic payments will make it easier for your clients to pay you.
2. Your Invoicing Terms Suck.
The reason why your clients aren’t paying you could be because of your payment terms. Perhaps your payment terms don’t work for your clients. Are your invoices due upon receipt ( net-15, net-30, or net-90? ). You should consider this. Try to set payment terms where invoices are due upon receipt. In doing this, you’ll get paid faster and more often.
3. Cash Flow Issues
Believe it or not, your clients might have cash flow issues, which could be the reason why they aren’t paying you. So, to deal with this, offer your clients incentives and discounts to make it easier for them to pay you. Getting paid something is a lot better than not getting paid at all.
4. Not Enough Payment Reminders
Sometimes you have to remind your clients ahead of time that their invoices will be due soon. You can do this by sending them a letter, allowing them to be aware that payment is due soon. A little reminder could work wonders for your business.
5. Poor Client Relationship
It could very well be that your relationship with your clients is weak, and is the reason why they aren’t paying you. Let’s face it if your clients don’t like you then they aren’t not going to make any effort to pay you on-time. So, try to find ways to show your clients that you care about. When you do this, you will be able to have a much better relationship with them.
A financial issue isn’t always the reason why your clients aren’t paying you. It could be related to your payment terms, client relationship, and how you run your business. So, use these five tips to help ensure that your clients pay you on-time and faster.