We’ve learnt that about 77% of small businesses in Australia are impacted by late payments. Cash flow is very important for SMEs and such delays significantly affect their growth rates. In the interest of looking out for the ones who are owed, here are a few strategies that can help get payments faster-
Accept Online Payments
Is there anything more annoying than having to make a personal visit just to make a payment? Being able to securely pay online is one of the biggest advantages of the internet and if you aren’t giving your customers that option, then you are very likely ticking them off.
So, start online payments now. Let your customers know that no matter where they are, they can pay their bill with just a few clicks. The easier it gets for them, the faster it gets for you.
We very much dislike stacks of bills that we have to find a place for at our homes or at our office. There’s barely enough space as it is!
Hard-copy invoices get misplaced all the time which is probably why your customers delay their payments. Start sending E-Invoices. Not only does this neatly tie up with the online payments we spoke of earlier, but it also completely kills the chance of people losing them. No matter what, those invoices will remain safe in their inboxes.
This is your usual, catching-flies-with-honey style of getting paid.
Give your customers the incentive of earning discounts whenever they pay on time. People love saving money and offers like these also keep them coming back for more. A simple one like “Pay Now to Enjoy 10% Off on your Next Purchase!” will have them being on-time like a Japanese train schedule.
Send Invoices Right After the Sale
If you don’t act like time is important, they won’t act like it is either. Sending invoices late not only decreases your chance of getting paid on time, but also sends a wrong message about your punctuality.
You have got to be quick on this one. Send the invoice right after the sale and only then may you start waiting.
Follow-ups Are a Must
You’ve got to understand that being paid on time is your right, and must therefore never be shy when reminding your customers about their dues.
Polite follow-ups done at regular intervals help communicate the importance of closing the transaction. So do not shy away from jogging their memory until the payment has been made.
Use Invoice Financing
Invoice financing is a way for you to borrow money against the amounts due to you from your customers. This method helps with your cash flow so that your growth and operations are not affected. Lenders like Hubbe provide invoice finance for small businesses that even collects payments from the customers for you. This strategy is a good alternative to being affected while waiting for clients to pay in full.
Read our related blog – 6 Reasons Why You Need Invoice Finance Your Business
So, these are a few ways of getting faster invoice payments. Employ a few or all and see a marked improvement in the overall process of invoice payments.