Late payment kills businesses, it’s a fact.
Latest research shows that British SMEs are having to wait an average of 41 days longer than their original agreed payment terms before invoices are paid. (source: BACS)
So what can YOU do to get paid faster?
1. Raise your invoices promptly. Don’t wait until the end of the month.
2. Send a statement after 1 week to remind them that payment is due.
3. Get payment upfront – It might sound obvious but do you ask for payment with order? or deposits? or to be paid cash on delivery?
4. Get Stage Payments – on projects agree stages and collect payment before you do the next stage.
5. You can now do single invoice discounting, so if you know the client is slow in paying use this method but build the cost into the price.
6. Agree Terms of Business and Payment Terms before you start any work.
7. Make sure you know who to bill and who to chase for payment
8. Make your invoice stand out, use bright colours and send a copy by Post and e-mail
9. Offer multiple payment methods – Credit Card, BACS, Cheques, PayPal – make it as easy as possible for your client to pay you.
10. Offer a discount for prompt payment, but only if you have built it into your pricing.
11. Charge interest for late payment.
12. Deal with any disputes quickly.
By taking action you will improve both your cashflow and profitability.
For more information please contact Edward Tudor at firstname.lastname@example.org or call on 01483-453733