5 Tips To Ensure You Get Paid Fast by Customers
If you’re a small business owner, chances are you know the importance of getting paid fast. But generating revenue is only half the battle: you also need to get that money from your customers so it can be put to work in your business. This is why it’s critical that all businesses learn how to ensure they get paid as quickly as possible from their customers. In this article, we’ll talk about methods for increasing efficiency and speeding up payment collection so that more of your hard-earned money goes straight into the bank account where it belongs.
Automate billing
Billing is a big part of your business, so it makes sense to automate as much of it as possible to save time and improve accuracy. You can do this with the help of a software program or service that allows you to enter all your billing information (like invoices and payment terms) into one place online, and then automatically send these documents to customers for approval once they’ve been created. This will allow you to get paid faster by streamlining the process from start to finish!
Eliminate duplicate tasks related to invoicing
When it comes to receiving payment from customers, there are numerous tasks that need to be done. However, you can reduce the amount of work you have to do by automating your invoicing process and using a customer portal that allows your clients to pay online. You’ll also want to make sure your billing system is set up correctly so that you don’t end up with duplicate tasks related to invoicing. This will help ensure that the money flowing in matches up with the amount being paid out.
Use online payment tools
Payment tools are a convenient and secure way for customers to pay you. They can be integrated into your website or mobile app, meaning that you don’t have to worry about allocating resources for manually processing payments. Online payment tools also help your business gain new customers by making the checkout process easier than ever before.
Online payment methods are easy to use, which means less time spent on training staff or explaining the processes involved with accepting them. Additionally, it’s often cheaper than other types of payment methods; there are no merchant fees involved when using an online service like PayPal! This means more money in your pocket – especially if you have a small workforce who needs training time allocated elsewhere.
Online services let you get paid faster too. Some even offer instant payments. When someone uses Pinch with Xero to make a payment, they can do so by scanning QR codes posted by their favourite businesses within the Pinch app (or just via an email address). No need for cash or credit cards at all just two phones are required, yours and theirs.
Send payment reminders
Once you’ve sent your invoice, it’s important that you keep in touch with your client. Remind them to pay their bill as soon as possible. While it may seem like common sense, don’t forget this step!
The best way to follow up with a client is by being polite and professional about the request for payment. Don’t come off aggressive or pushy. Instead, be friendly and explain why it’s crucial that they pay their bills on time (and on what date).
It’s also important to be specific about what action you need from them, it’s not enough just to say “pay your bill”. Instead, tell them exactly how much money needs to be paid by which date and whether there are any other steps they need to take before making payment (e.g., signing an invoice).
Ask for deposits and partial payments upfront
You can get paid faster by asking your customers to make partial payments and deposits upfront. This is the best way to ensure that you get paid on time, every time.
You may ask for a deposit (or as much of a deposit) as possible before you start working on a project. This is important because it shows that your customer has trust in your work and will pay you when your work is done. The larger the deposit, the more confidence they have in what you do – which means less chance of them not paying at all or paying late.
Get one-third down, one-third halfway through, and all remaining bits up front when it’s done. Request partial payments until you finish your task or project, even if this is just an hour into what was supposed to be twenty hours’ worth of work. Remember that getting paid quickly is great for both parties involved so don’t be afraid of asking.
Conclusion
It’s important to remember that you’re working with a client, not just a customer. Your relationship is built on trust and mutual respect. If you get paid fast by your customers, they will continue to work with you and refer others.