How do you get your outstanding invoices paid?
Do you dread following up outstanding invoices?
It can be frustrating when you have customers who haven’t paid their invoices. Not to mention the impact on your cash flow.
Getting paid on time is essential to good cash flow. But how do you get paid?
Here are some simple, effective techniques that can help you get your outstanding invoices paid.
Make sure your terms are clear
Write into your terms of service that you will charge a late fee for overdue invoices. Make sure you your customers are aware of your terms of service before you do the work.
Also, we recommend doing a credit check before you do business with a new customer. This can help reduce the risk of late payments and defaults, as well as minimising the need for follow-ups.
Reminders
Often, the payment is a simple oversight. By resending the invoice or sending a simple payment request an outstanding invoice will be paid. Start there, and you might be surprised by how many outstanding invoices are paid.
Better still, set your accounting software up to send automated reminders to customers with outstanding invoices. Talk to us about how to do this.
If the above action doesn’t achieve the desired result, ie your outstanding invoice being paid, it’s time for firmer action.
As uncomfortable as it can be to make a phone call to ask for payment, it can be one of the most effective ways to get paid. Perhaps start with asking are they aware that their invoice is outstanding.
A stronger stance
So, what do you do if your customers don’t respond to your polite requests?
If you have been waiting for payment for months, it’s time take a stronger stance.
This could include:
- stopping your services until payment is made
- using a professional debt collector
- bringing in your lawyer
While you will likely get paid by taking this stronger stance, you do need to consider the potential impact on the relationship with your client. How important is it? Do you want to continue to do business with them? Is it worthwhile continuing to do business with them?
If you need help managing your outstanding invoices, get in touch for expert support and guidance.