One of the biggest hassles that any business can face is trying to get your clients to pay their bills on time. While you are quite certain that your customer will eventually settle their debt, you can’t really afford to wait for them to do it in their own time. After all, you have bills and salaries to pay as well. To top this off, you have to be careful about how you approach your clients with this matter too, as you need to maintain a good working relationship with them. Well, you can rest easy as the following tips will show you how to manage this tricky task:
Outline Their Cost and Payment Schedule Early
Now, you probably discussed the overall cost of the goods or services that you have provided and mentioned the payment schedule as well. Since there is a good chance that your client was paying attention to this particular detail, you may want to reiterate all of this information in an email. Clearly outline how much money the customer needs to pay as well as when the payment is due. Despite this email, you are going to find that it is necessary for you to send reminders as well, just so that they pay up on time.
Send Invoices on Time
You may have to admit that your business is a bit lax in sending invoices to your clients. Don’t worry, you aren’t the only company that makes this mistake. However, if you want your customers to settle their bills on time, then you need to make sure that they are getting their invoices on time. To avoid any delay, you should consider using accounts receivable software. Here, all of the invoice-related tasks are automated and handled digitally. This means that they are processed more quickly and thus, are always sent at the right time.
Create a Personal Connection
If your clients see you as a faceless corporation, you may find that they don’t feel as obligated to pay their bills in a timely manner. In their mind, you have plenty of other paying customers and therefore, can wait a little longer for your money. On the other hand, if you go out of your way to create a more personal connection between the two parties, this apathy will quickly disappear. Instead, it will be replaced with a sense of responsibility to someone that they know intimately.
Provide Small Incentives
There is absolutely no pleasure or happiness to be gained from paying your bills. Rather, it is a reminder that you know have less money than you did before. So, it is little wonder that clients aren’t in a hurry to settle their debts with you. Nevertheless, if you provide a small incentive to them, this can help to take the sting out of this task. Glowing emails, small gifts, or even discounts can all make your client more open to the idea of paying their bills on time.
As you can see, there is quite a lot that you can do to make sure that your clients settle their bills, whenever they are due.