Are unpaid email addresses a major problem facing your business? Is it adversely affecting your cash flow? The trouble of going through your email list and scanning through an ever-packed inbox is not easy. Time is of the essence and has to be prioritized. Normally, opening an email depends on how compelling one finds the subject line. Most emails are skimmed through meaning the shorter drafted ones get the most attention. Chasing pending payments through your emails is not the fastest way to receive payment. Often, email hold-ups are occasioned by errors that need rectification. That is why conversing with the customer works best as you are in a position to develop a relationship. It’s quite obvious that people pay people they like.
The shorter and clearer emails, the better the responses. Clarity ensures that your email does not get ignored.
Here are 10 advanced Invoicing tips that will help you get paid faster.
1. Get clients to pay invoices faster
Do not fear to make customer service calls. That’s the fastest way to clear all pending invoices. In most cases, invoices that are not attended to by the customer have some sort of an error in them and do not get paid. A simple phone call helps point out the issue, have it rectified immediately, and resubmitted with the reassurance that the conversation is fresh on the customer’s mind.
2. Be clear on your payment-first policy
Ensure your clients get to understand your terms of doing business however you can. For instance, it can appear on the front of the invoice. Any strategy you can adopt to help your customers pay on time is welcome. Clearly point out the date it is due so that clients have a working timeline to clear the outstanding invoice.
3. Direct communication
How does one avoid upset a client when asking for due payment? The best way to approach this is by asking them to pay. The secret is to master how to use your voice. When talking face to face, customers look at the tone of voice, what you are actually saying, facial expression, and general body language. In a phone conversation, focus on the tone of your voice and what you actually say. In summary, it’s not what we ask for to be paid that counts, but how we ask for it that determines how fast you get your money.
4. Simplify the payment process
The most common form of invoice payments is email, fax, or mail. If your client prefers the mailing option, it would be inadvisable to add the mailing charge to your invoice. Your idea is to avoid any unnecessary bottleneck or impression that could adversely affect speedy payment of your invoice Building a good relationship with your client outweighs the meager charge on a stamp.
5. Cases of overdue invoices
If its hard to reach customers through the phone, start by giving the client the benefit of the doubt. They might be busy or inaccessible. It is frustrating determining whether the failure to settle the invoice is deliberate or accidental. Here is what you can do:
- Maintain your cool
- Try reaching out during noon hours
- Inquire if there is any issue if you engage any party over there
- Try contacting using another colleague and join the call if they answer
- Express your worry
- Use your intuition to judge the situation
- Try a reach out on social media
6. Replace paper invoice with an electronic invoice
Paper invoices can be lost to damage, loss, or misplacement. Most prefer reliable solutions rather than a patch up invoice process. Switching to electronic invoicing helps you easily adjust to invoice automation. A digitized process speeds up the invoice payment process significantly. It offers greater convenience of paper-based invoices.
7. Send out invoices immediately after receiving service.
Urgently sending out your invoices shows a sense of urgency to the customer. That gives them the impression that work completed and prompt payment a single step. The two processes are distinct, but the psychological impact is what matters. Often, such an approach compels clients to pay up quicker.
8. Refrain from technicalities, keep it simple
Avoid grammar complications with words such as “net.” Simply point out that “30 days until overdue” instead of “net 30.” Any word or expression that might wrongly confuse your client should be avoided. Communicate the duration timelines by using “due upon receipt” while including the date of dispatch.
9. Implement late payment penalties on habitual defaulters
Penalties are the perfect deterrent for people who are habitual defaulters. Some argue that imposing penalties may chase away clients or hurt the business-customer relationship. Have a reasonable flexibility scheme such as 90+ days after the default date attracts a penalty, but anyone who clears the balance within the grace period in full gets a waiver.
10. Cease work till payment backlogs are cleared
The best way of dealing with chronic defaulters is to cease operations until pending bills are cleared. This gives your customers an incentive to pay their bills on time.
Choose Invoice Crowd Software and Make your invoicing process more fruitful
Invoice Crowd is a leading invoice accounting company that has been running for the last 5 years. The company provides clients across 3 continents with safe, secure, and cost-effective invoicing payment services. We offer cash flow statements, accounting statements, estimates, and a lot more.
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