Customers who make late payments can be stressful for any business. Late payments cause cash flow issues, affect future budgets and take away from valuable work time. How can you be expected to sell inventory, deliver goods, excel at customer service and be an after-hours collections agent?
To help you get back to work, we’ve gathered some of the most effective ways to deal with slow payments:
Tighten your payment terms
Some people are wired to be late. These are the folks who are often late to work, late to social functions and late to pay. By adjusting your payment terms from 30 days to 15 days, you increase the chance they’ll pay “on time.”
Consider a range of payment options
Accepting a range of payments gives clients more options. For example, platforms like Invoice2go accept both debit and credit cards. Payment to the business takes only days to settle, making the process simple and efficient.
Accepting credit card payments also gives customers extra time to make a full payment on their own terms. This works well for those who cannot pay the balance off as quickly as you need.
Track invoices and follow up when payments are past due
Invoice2go allows you to track when a customer has viewed your invoice email. A quick glance can tell you if your email has been delivered or if it may have been delayed by spam or left unviewed.
Invoice2go’s payment reminder feature helps you know who needs reminders and when. You can then nudge slow-to-pay customers while improving your cashflow.
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.