If you want to run an effective business, you must make sure you get paid regularly.
Even though you are probably focused on providing quality products and services for your customers and clients, you need to make sure they pay you on time. Right now, there are too many businesses that are struggling with B2B payments today. The good news is that this is a problem that has some solutions. What are a few of the most important tips you should follow if you want to increase your chances of getting paid on time? Take a look at a few important tips below.
1. Make Sure You Include a Due Date
If you want to get paid on time, you need to specify what that means. This means you should always include a due date on your invoices. If you do not include a due date, your customers may not know when they are supposed to pay you, and they might end up waiting until the last minute. When you send an invoice to a customer, make sure there is a due date on it. That way, you can increase your chances of getting paid as quickly as possible.
2. List the Payment Methods You Accept
One of the most common reasons why businesses do not get paid on time is that they do not include a list of the payment methods they accept. Then, when they finally decide to pay you, they have a payment method that you do not accept. Therefore, when you send an invoice to someone, make sure you list the payment methods you accept. For example, do you want them to pay you using a check? Or, do you want them to pay you using a credit card? Keep in mind that the more payment methods you accept, the greater the chance of you getting paid on time.
3. Send the Bill To the Right Person
In addition, you must make sure you send the bill to the right person. Just like your employees have jobs to do, the people getting your bill have a job to do as well. If you send the bill to the wrong person, you might not end up getting paid. That is because the person you send the bill to might not know how to send you your payment. It might not be their job, so they simply let it fall by the wayside. When someone places an order with you, make sure you figure out where you should send the bill. That way, you can make sure your invoice ends up in the hands of the right person.
4. Keep Solid Records
No matter how strong your business is, disputes are going to arise when it comes to payments. Your customers may feel like they don’t owe you as much money as you say they do, and you need to have solid records to refer back to. Or, your customers may claim that they never got a bill from you, and you need to refer back to your record to clear up the situation. You might even want to consider automating your record-keeping. That way, you can send your bills automatically when someone places an order. If you keep solid records, you can reduce the chances of someone making a mistake, and you can make sure nothing falls through the cracks.
5. Consider Adding a Late Fee, Sometimes
Finally, if you are really having a difficult time getting someone to pay you, you should consider adding a late fee to your bill. You do not necessarily want to include a late fee for everyone. There are unavoidable circumstances that arise from time to time, and you must make sure you treat your customers and clients well. On the other hand, if someone has a habit of waiting weeks or months to pay you, you should consider adding a late fee to that specific invoice. That way, you incentivize your customers to pay you one time. You might want to consider making a late fee a certain percentage of the overall order.
Think Carefully About How You Bill Your Customers
Ultimately, these are a few key factors you need to consider when you are looking for ways to improve your invoicing practices. You don’t want to make your customers angry, but you still need to make sure that you get paid on time. If you don’t get paid, you will have a hard time paying your bills, and that might mean you struggle to keep your business afloat. Make sure you are consistent when it comes to sending out your bills, and ensure you follow up with customers who do not pay you. That way, you can keep your business in the green, and you can keep your doors open.