Unpaid invoices and delayed payments can cripple a small business. This can put an unnecessary strain on cash flow that can be prevent and help you get paid faster.
Late payments can make it difficult for a small business owner to cover operating costs, inventory needs and even payroll for employees. These are common challenges that many small business owners face. Here are some simple solutions that will help you to get paid faster and more consistent.
Offer More Ways To Pay
The easier you make it for customers to pay you for services and products, the faster you will get paid. Today in the age of the digital workplace writing a check takes time that people don’t want to deal with. Give your customers the option to pay by check, cash or credit/debit card.
If you have reoccurring customers that pay you the same amount every month,
Bonus For Early Payments
Who doesn’t want to save money on their bill? Most customers appreciate saving a little money on their bill when they pay early. You don’t have to offer the incentive in cash only.
Customers are used to collecting points or other rewards for different types of services. Customers that pay their invoice early for 6 months could get a small gift or bonus points to use towards products or a discount.
Incentives are all about showing your customers that they are valued. Any form of recognition will prompt customers to be more inclined to keep up paying your early for your products or services.
We mentioned this in the paragraph above. Companies like Paysimple.com offer a software solution with credit card processing to put your customers on autopilot. Automatically invoicing or charging your customers is easier for both the customer and the business owner. That way if the customer’s account lapses into the red, the system also handles the gentle reminders that their transaction failed. This helps you as a business owner to avoid those difficult conversations about late or no payments.