How To Get Paid Faster: Unpaid & Overdue Invoices
We all know that getting paid especially in a timely manner is one very important factor for our business to maintain a constant cash flow system. If there are struggles with recouping unpaid or overdue invoices, this can be detrimental to running the business and meeting up our payroll.
In order not to maintain a healthy cash flow and not get thrown out of business, here are several tips on how to get paid faster and steady the flow of income;
- Extensive research: Once a client has become hard to contact, either his phone is disconnected or there is an error message to his email, making use of the web becomes an option of contacting them. Searching for their name or that of their company of web-based platforms such as Google, or LinkedIn can be helpful in gathering other unknown information in contacting them.
- Politeness: Showing politeness to your clients have been found to get you paid faster. As it is said, the simplest of things go a long way and makes a huge difference. A small phrase such as “please pay your invoice” or “thank you for doing business with us” can make a big difference and increase your percentage of paid invoices by 5%.
- Keep a payment schedule: For you to know correctly where your money is stocked, or which client’s balances are overdue, there must be a schedule created to show exactly how much you are owed, by whom and for how long. A column for their contact information must be opened as that would serve as your go-to guide when collecting your unpaid and overdue invoice.
- Follow up: From the information gathered on your payment schedule, you would be able to follow up each debtor by calls or by email. Keeping track of the outcome of your actions are important as it shows your progress with collecting your unpaid or overdue invoice.
- Adjust your credit terms: In any sale, it is up to you to know the length of credit terms each customer is attainable to. Adjusting your credit terms and replacing them with late penalties or discounts on early payments would help you be able to collect your cash much sooner than expected.
- Create multiple streams of payment: Creating/providing different payment options for your clients would enhance their payment abilities as it can be made on the go.