If you keep on finding that your customers are always missing your payment deadlines, then you probably understand how infuriatingly frustrating it can be. You may feel as though you are putting a lot of work in and getting very little out of it, and this is the last thing that you need. If you want to get around that then it is vital that you put in the work to make sure that you are always controlling the process and that you know where you stand. For most business owners, this starts with understanding why your customers are paying late in the first place.
They Are Waiting for Authorisation for Payment
Some companies, especially bigger ones, tend to have very strict payment procedures in place and these need to be navigated properly if you want to get a payment on time. If you can, learn about things like this before you get to the invoice date so that you can ensure that this excuse is never going to be used again.
One of the best and the easiest ways for you to try and safeguard your business against practices like this would be for you to make sure that both you and your client are on the exact same page, right from the get-go. This can be achieved by providing a robust set of terms and conditions. It would also help for you to read more invoicing software for small business at bestinvoicingsoftware.com so you can make a decision on which is the best investment for your business.
They are Waiting on Payment from their Own Customers
When cash flow is tight, some businesses will put off making any payments until they know that they are in a good financial position. At times like this, payment providers will often prioritise their payments and if you are at the bottom of the list then you may find that you are waiting a very long time to get paid. One way that you can overcome this would be for you to keep in touch with your customers. If you want to do this, then you need to get in touch with your customers. If you do this then you will soon find that you can adjust your own cash flow accordingly.
Needing a Copy of the Invoice
Believe it or not, creating a good invoice is a huge part of getting paid on time. It doesn’t matter whether your customer says that they have never received the invoice, or whether they have lost it, it’s vital that you find out about this as soon as you can so that you can prevent any kind of late payment. Put in a courtesy call on the day that you expect the invoice to arrive so that you can make sure it arrived on time, or even switch to e-invoicing.
They Can’t Afford to Pay
The cost of business is continually rising. Widespread late payments and economic uncertainty really do make it hard for businesses to stay on top of the cash flow they have. As a result of this, some customers might not be in a position where they can settle the invoice with the company. In instances like this, it can be very beneficial for you to set up a payment plan so you can get paid eventually, even if it is over a long period of time.