Tips for getting invoices paid faster
Raise your hand if you'd like to get paid faster. Here are some tips that have worked for us.
Setup automatic reminders
Sometimes clients pay their invoices late. It's a fact of life. But, it's not always because they're tight on cash or trying to screw you. Sometimes they just forget. So, why not remind them?
I setup our system to send a reminder 21 days after I've sent the invoice. Our standard terms are NET 30, so that means my clients are getting automated email reminders a week before their invoice is due. That's just enough time for them to cut a check and drop it in the mail to get their payment in under the deadline.
The key is to word the email in a way that gently reminds them their payment is due. It's no time to sound like a hard ass. (Save that for the 90 days past due reminder.)
I also make sure to call out the fact that it's an automated reminder from my invoicing system. I don't want to send the impression that I have nothing better to do than sit around and remind people to send me checks.
If your invoice system doesn't offer reminders or you send invoices manually, you could try scheduling your emails with Boomerang or setting reminders for yourself in your calendar. But really, you should have an invoice system with basic features like this. It will save you money in the long run.
Accept credit card payments
I know, I know. Credit card fees can be steep. Merchant accounts are a pain to setup. There's always a risk of chargebacks.
These are all good reasons for not accepting credit card payments. But, you know what, cash is king. Anything that gets me paid quicker is worth trying.
I did business for four years before I finally setup a merchant account. I wish I had done it sooner. We have clients who literally pay in 3 days on average because we accept credit cards.
It wasn't that hard to fill out the application and now with services like Stripe, there's no excuse not to have a merchant account.
Some clients like that they get points or cash back. Other clients like that they don't have to work through the check writing process with their accounts payable department. I like that I get paid faster.
Here's another reason to accept credit cards; auto-payments. Do you have ongoing retainers or maintenance plans where you're billing a client the same amount every month? (If not, you should.) There's nothing better than sending an invoice and seeing it automatically paid from your client's credit card on file.
This may be obvious, but the sooner you send the invoice the sooner you get paid. Don't procrastinate. Don't wait until the end of the month. When the work is done, send the invoice.
In fact, it might be a good idea to require final payment before you hand over the final deliverables. Once they have your final product you've lost most of your leverage. But, payment terms should be set clearly before the project begins. This isn't something to surprise your client with at the last minute.
What tips do you have for getting paid faster?