In most cases, small businesses don’t have an investor backing them. Thus, they need a stable cash flow to keep up with their expenses and simplify their accounting. With the right tips and tricks and good online invoice payment processing software, you can be assured that your clients will pay you on time and even before the due date.
So, to ensure smooth business expense tracking
and have streamlined finances, you should invoice immediately after you submit
your work and offer multiple payment gateways for the same. We suggest using
these methods to get your payments faster.
1. Request Advance Payments
One of the simplest ways to get paid faster is to charge advance payment, either partial or full. This will particularly be useful for long-term projects as they can take several months to complete.
This way you will also have ample funds to cover project costs. Moreover, you will also have a stable cash flow to look after your other business expenses.
2. Create Simple Invoices
If you, too, are a victim of late payments, the chances are that your invoice has some issues. For example, if it doesn’t convey information clearly or has a poor design, you may find yourself at a loss.
Your clients may or not be able to find the information
and may get confused. This, in turn, leads to delay in payments. Also, make sure
you highlight the total amount and deadline for payment.
3. Invoice Immediately
Sending timely invoices is the key to quick payments.
Thus, make it a habit to invoice your client as soon as your project is
completed. Another way is to send your invoice with the final draft of your
work.
Doing so will keep your name fresh in the client’s mind,
and they will pay you quickly. Also, since you will invoice with your online
payment software right away, you are less likely to make mistakes on the
invoice.
4. Stay Clear with Payment Terms
Make sure you discuss your payment terms before you start working on the project and record all the details in your free online invoicing software. This way, your clients will know when they need to make payments and what are the repercussions of making late payments.
5. Offer Multiple Payment Methods
You can add multiple payment options in your online
payment software and provide your clients the much-needed flexibility with
payment methods. This will not only expedite the payment process, but you will
also look more professional and will have fewer troubles onboarding new
clients.
6. Accept Automatic Payments
Your free online invoicing software can help you by
letting you collect automatic payments for your invoices. This way you can charge your client’s debit/credit card on the
same date each month. Thus, saving them the effort to pay you and eliminating
guesswork for both parties.
7. Offer Incentives
When you offer incentives for early payments, you can
help your clients develop a habit of paying bills before time. We suggest you
offer a 2% discount if the bill is paid within ten days of the due date. While
it will not save your clients a fortune, it will show that you value their
efforts, and they are more likely to send your payments.
8. Charge Late Fees
Just like good behavior deserves appreciation, bad behavior should be penalized. It is a great practice to give out discounts and other services for timely payments. But, make sure you charge some amount of fees when your clients miss payment deadlines.
Before you sign the contract, you will need to discuss
your late-free policy and mention it in the payment terms section of your
invoice. This will avoid any surprises and help you bring a strong rapport with
your client. Thus, you should consider charging a nominal percentage of your
amount as late fees.
Wrapping Up
A free online invoicing software can work wonders for
your business. Not only will they let you have a smooth cash flow, but you will
also be able to improve profit margins to a great extent. Luckily, you no
longer need to search for good online payment software as we are there to help
you!
