One of the biggest challenges entrepreneurs deal with is getting customers/clients to pay on time. As the sluggish economy continues this financial headache can shut down your small business
But there are ways of getting paid more quickly.
Invoices — Send them as quickly as possible. Do you ever pay a bill without receiving an invoice? Well many small business owners get caught up with work, or they are too busy putting out “fires,” that they forget to send a bill. Small business owners are notorious for forgetting or late in sending out bills. This should be number one on the to do list!
Itemize — Every charge should be explained and itemized with every service you provide and be sure to make any discounts very clear. Do not send an invoice with only the dollar amount. In some instances you can give professional discounts and that must be highlighted. Most customers/clients want to know exactly where they have spent their money and once it is understood you are apt to get paid faster.
Deadlines — Avoid any confusion by making deadlines very clear. When you customer/clients are signing the contract/proposal be sure to tell them how much time they have to pay. Reiterate your billing policy and if there are additional fees for packing and shipping.
Installments — To avoid hitting your customer/client with a big bill consider setting terms and installments. Many people don’t like getting sent a big bill and will become overwhelmed. By sending more invoices with smaller amounts will work to your benefit and gives you a better chance of getting paid.
Connection — Spend time getting to know the individual who signs the purchase order, contract or proposal. On a fairly regular basis send a handwritten thank you note. Build a relationship and the customer/client will appreciate that you care and ultimately will pay the bill more quickly.
