7 Simple Tips To Get Paid Faster

As a business person, late payments are one setback that derails the progress of a business. They can be very frustrating and could lead to a strenuous relationship with the client. The average at which a payment is termed late is between 19-21 days. Here are 7 simple tips to get paid faster:

1. Be polite: showing politeness towards a customer who is owing can really improve your chances of getting paid quicker. A recent study shows that small phrases such as “Thank you for doing business with us” and “Please pay your invoice between …” can go a long way and make a huge impact in recouping your debts faster as another survey shows that being polite increases the chance of being paid by 5%.
2. Be specific: Stating clearly when you want to be paid is another chance of getting paid faster and it works more than using terms like “pay upon receipt”. The mind of the client would be more awake to a specific time frame of payment than when he’s allowed to pay at his own free will.
3. Add interest to late payments: a high percentage of invoice gets paid when clients are aware that late payments accrue interests although such actions would see your invoice payment become slow, it is more effective when you need steady cash flow and when every penny is important to running your business.
4. Offer Incentives: As threatening clients with added interest gets you paid slower, why not offer clients tempting and mouth-watering offers which can only be gotten when debts are paid within a certain time limit. Making your customers understand that making a payment quickly would attract additional benefits would see you get paid often and always see your customers return for business.
5. Provide multiple payment options and invoice routine: Once your clients become aware of other means to make payments to you without stress, they will pay up faster and business would move at a faster speed. Create a routine of invoicing your clients at a certain time always and watch them get used to receiving their invoice at that moment. If they don’t get it at the usual time, they would contact you.
6. Auditing: keep a record of the average time it takes for each client to pay up and spend more time on those who are late payers. If you have a client who always pays late, make sure they can pay for their next goods and service before delivering or carrying out any service for them.
7. Think about little actions: such as being prompt with the invoice, the content of the invoice, style of the invoice and description of what they are paying for.

All these factors listed contribute to getting paid really quick.

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