Managing cash flow is essential to any small business, but getting customers or clients to pay in a timely fashion can be a tricky business. In "6 Simple Tricks to Avoid Late Paying Customers," Meredith Wood offers some good advice.
1. Check out clients in advance. Know who you're dealing with before you're left with a big invoice that goes unpaid for months. Just as your customers might ask for references before they sign with you, so you can ask clients for references before agreeing to take them on, especially for projects that will involve big payments.
2. Clearly state your invoice terms. Be upfront with how and when you expect to be paid. For example, I always ask for payment within 30 days of sending my invoice. Just having a payment due date can spur follow-through.
3. Mind your manners. Using "please" and "thank you" when sending invoices can go a long way to getting them paid quickly.
4. Make it easy to be paid. Have a PayPal or similar online option for easy of payment. For long-term relationships, you might see if the client will do direct deposit. One association I work with on a regular basis was more than happy to convert paper checks mailed to me to direct deposit into a checking account. I get paid quicker and they save money not on printing and mailing checks.
5. Be understanding. Sometimes, clients get into a tight spot. Be willing to be flexible or accept a payment plan.
6. Be gentle in reminders. Also be polite when following up--those handling your invoices can make honest mistakes, so it pays to be nice. As your grandmother might have said: You catch more bees with honey than vinegar, and the same holds true for getting your money.
By following these simple steps, you can make getting paid more painless.
Until next time,
Sarah
1. Check out clients in advance. Know who you're dealing with before you're left with a big invoice that goes unpaid for months. Just as your customers might ask for references before they sign with you, so you can ask clients for references before agreeing to take them on, especially for projects that will involve big payments.
2. Clearly state your invoice terms. Be upfront with how and when you expect to be paid. For example, I always ask for payment within 30 days of sending my invoice. Just having a payment due date can spur follow-through.
3. Mind your manners. Using "please" and "thank you" when sending invoices can go a long way to getting them paid quickly.
4. Make it easy to be paid. Have a PayPal or similar online option for easy of payment. For long-term relationships, you might see if the client will do direct deposit. One association I work with on a regular basis was more than happy to convert paper checks mailed to me to direct deposit into a checking account. I get paid quicker and they save money not on printing and mailing checks.
5. Be understanding. Sometimes, clients get into a tight spot. Be willing to be flexible or accept a payment plan.
6. Be gentle in reminders. Also be polite when following up--those handling your invoices can make honest mistakes, so it pays to be nice. As your grandmother might have said: You catch more bees with honey than vinegar, and the same holds true for getting your money.
By following these simple steps, you can make getting paid more painless.
Until next time,
Sarah
