How to Get Clients to Pay On Time?

by Kevin Smith Author

Are your business clients consistently paying you late? It is interfering with your cash flow and preventing you from. Having enough money to keep your doors open? If so, it is time to take action. From late fees to working with a factoring broker in Roswell, GA, there’s a lot you can do to help your business. Use the tips below to get your clients to pay on time and ensure you have enough money to run your business.

Ask for Payment Upfront

One way to ensure your business gets the money it needs to operate is to ask for payment before providing the service. If you are working on a large project or just received a large order, ask for a deposit upfront and smaller weekly payments until the project is completed. This will ensure that you have money flowing in throughout the duration of the work. Plus, your clients will be happier making smaller payments and more likely to do it on time.

Deliver What You Promise

If you say you will deliver the completed project in a week but it actually takes you two weeks, you won’t be able to send out the invoice within the given timeframe. This means more time you must wait for your money to come in. To prevent this, do not take on more work you can handle and don’t promise something you cannot offer.

Incentives and Late Fees

Offer your clients an incentive to pay early and a deterrent to prevent late payments. As an incentive, you can offer a small five percent discount to people who pay their bill ahead of time. To deter clients from paying late, you can tack on a late fee. You can add a $5 late fee or increase their bill by a certain percentage. Remember that the late fee is not meant to increase your profit but rather discourage clients from paying late.

Offer Recurring Billing

If you have a regular client who is invoiced every month, you can set up recurring billing. This way, their bill will be paid automatically when the time of the month comes. Though your client must first agree before you sign them up for this, many people prefer this type of billing because it requires little effort on their part.

Invoice Factoring

Are you still unable to get your clients to pay on time? Don’t give up hope yet; you can still get your money when you need it. The solution is invoice factoring. With this method, a factoring broker in Roswell, GA, will give you the payment for your outstanding invoices. This is a quick and easy way to get the money your company needs to stay up and functional.