3. Be Flexible.
As mentioned above, it’s crucial to include how a customer can pay you in the invoice. However, give a good thought to what these ways are. Studies show that the more convenient it is for a customer to pay, the faster and more consistent these payments will be.
FISERV, who conducted this study, analyzed 8 million telephone company accounts and saw that people who could pay electronically were most likely to pay their bills on time. Explore making electronic payment options available, such as direct debit, mobile payments, accepting credit cards or some merchant account services like PayPal.
There is no reason to not help make your customers’ lives a little easier.
4. Be Stern.
Make sure customers realize that you take your payments seriously.
Let them know, in the invoice, if they don’t get their money to you on time than there will be consequences (such as finance charges). Including this in your invoice keeps customers from being upset if you bring the charge up after the case.
More importantly, this motivates the customer to get that payment in on time. Nobody wants to pay more money than they have to. Be clear with the consequences so your customer won’t be left to debate any of the facts.
Sometimes the smallest changes can have the largest effect on your cash flow process. Making these tiny adjustments to your invoices will cost you absolutely nothing but can save you countless dollars in delinquent payments. Make a pact to start taking control of your receivables management today, beginning with your invoices!
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Photo Credit: Marty Coleman, Make Studio; Louis Vuitton
Meredith Wood is the Community Manager at Funding Gates, the first ever online credit department for small businesses. By automating the entire debt collection process, Funding Gates serves as the one-stop-shop for receivables management. Always looking for good talk on small business, connect with Meredith on Twitter @FundingGates
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