Late-paying customers can cause serious stress for any business. Chasing them down for payment can be awkward, not to mention the strain it places on your cash flow.
To help alleviate some of that stress, there’s some systems you can put in place with Invoice2go to help you get paid on time, every time.
Here are a few ideas:
Keep tabs on what’s due
Before you can take action on your unpaid invoices, it’s important to have a handle on what exactly is outstanding. This is where Invoice2go’s Today feature can help you out. We recently launched Today as your one stop shop to see which invoices are outstanding–what’s overdue and what’s due soon- and to save you from having to think about, “who owes me money?” To access Today, simply tap on the Today inbox icon on the top right corner of your home screen. From here, you can also quickly contact your clients via email or message, and mark invoices as paid.
Set up automatic payment reminders
Now that you know who needs a nudge, set up payment reminders to take the pain out of actually following up. We’ve learnt that Invoice2go customers who have payment reminders turned on, get paid 2 days faster and have 14% fewer unpaid invoices than those who don’t. To switch your reminders on, go to the Settings menu, click Client communication, then Payment reminders. Here you’ll find options for reminder timing. Choose between 3 days before the due date, on the due date, and 3 or 7 days after. Toggle on or off as needed. You can also see what reminders are going each day within your Today tab. This will save you a lot of time in nudging slow-to-pay customers while improving your cash flow.
Pick up the phone:
Build up your relationships rather than straining them by having a friendly conversation. Phone communication may be “old school” to some, but hearing a real person’s voice can go a long way. Using Invoice2go, tap on a client from your Clients list to view their profile. Here you can call your customer while having their information at hand, including a list of outstanding invoices from the activity feed.
Avoid the ‘waiting for payday’ excuse:
More than likely, you’ll hear a wide range of excuses from serial slow-payers, including, the ultimate ‘waiting for payday’ excuse. Counteract these by accepting a range of payment methods. Debit, credit, Paypal, in-person payments with Paypal Here* — the choices are nearly endless. The more options to pay, the easier the payment process and the more likely you are to get paid on time. Accepting credit card payments also gives customers time to make a full payment on their own terms. This helps those who are struggling to pay the balance as quickly as your business needs.
Did you find this advice helpful? Or do you have other good advice for dealing with slow payers? Leave us a comment below and let us know what you think.
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*Only available in US, UK, AU
**Features mentioned may not be available on all plan types, to check visit the plans page.