Seven Ways to Get Your Clients to Pay You on Time
by AccountingWeb on
By Christopher Knight
- Teach them to pay you on time. You do this by being consistent in your enforcement of your payment policies and calls to them within days, not weeks, if they miss a payment.
- Accept all major credit cards. You are about service, right? You do want to make it easier for your client to do business with you, right? Lastly, you do want their money in your bank account overnight, right? Then accept MC/Visa/Discover and American Express.
- Give them a direct debit option, if you are billing them a recurring charge. Give them the convenience of paying their bills via checking account draft automatically.
- Give them a discount for pre-paying.
- Include a return envelope along with your invoice, so all they have to do is include their payment into the envelope, add stamp and send.
- Be available to setup payment plans or payment promises for folks who are behind on payments. If you're rigid in your policies you may not see a dime, but if you're flexible and are willing to setup a payment plan, you may see more of the money you are owed faster.
- State your payment terms or policies UP-FRONT, so there is no mis-understanding what the terms are or are not.