Last Updated on September 1, 2024 by Dave Schoenbeck
If you’re a small business owner, chances are you’ve encountered clients taking unreasonably long to pay you. It might be because your client is a big company who thinks they can get away with it, or maybe your client is simply disorganized. Whatever the reason, late payments can cause severe problems for you and your business.
Fortunately, you can do a few things to increase your chances of getting paid promptly.
Here are 3 ways to get your clients to pay you on time.
1. Set the standard.
If you were late sending invoices, to begin with, why would your clients pay on time? You have to demonstrate the behavior you’d like to see them exhibit. Be prompt with your invoices, and be sure they’re error-free. Mistakes could slow the process by causing unnecessary back-and-forth between yourself and accounts payable.
Many programs and applications are designed to automate your invoices so you don’t have to think twice about them. See what’s available for your operating system and find the right one.
2. Have a contact.
One of the best ways to ensure your clients pay on time is to develop a relationship with someone at their organization – preferably the person responsible for paying you. It’s easier to ensure your invoices are a priority if the person processing them knows who you are. Be friendly and polite, and they’ll likely be more willing to help you out;
However, don’t let friendliness stop you from sticking to your guns. If payments are late and problematic, be prepared to go over their heads if necessary. Don’t throw anyone under the bus, but remember that talking to a higher-up at the organization may be an excellent way to speed up getting your client to pay you on time.
3. Be clear about your policies.
Clients will let things slide if they get the chance. It’s essential to be firm about when you expect payment from the start. Don’t tell them it’s no big deal if they’re late paying you the first time—let them know this is a serious issue and that it’s enough to make you reconsider your partnership with them.
I suggest you schedule a regular payment schedule to help your clients pay on time. Whether that means receiving a payment within a certain amount of time after the invoice is sent or on a fixed date each month, giving your clients a set deadline takes the guesswork out of when you’ll get your payment
Having clients pay on time is crucial for an entrepreneur because you need that money to run your business and have professional standards to uphold. By setting a solid precedent for the kind of treatment you expect from a client early on, you’ll lay the groundwork for a successful partnership in the future.
If you are serious about taking your business to the next level, fill out my contact form, and let’s talk.
Coach Dave
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