One of the most frustrating things about running your own business is getting your clients to pay up when they’re supposed to, or even at all in some cases! Thankfully, although you probably aren’t going to get every client to pay on time every time, there are lots of things to do to increase the number of speedy payments your business does receive, so let’s take a look at some of them right now.
Create a rock-solid contract
The best thing you can do to ensure clients pay on time is to work with a reputable law firm like Boulder Legal Group to come up with a water-tight contract that sets out your expectations from clients and what they can expect from you. If they know they have signed an official legal document outline when they must pay, they are far more likely to do so off the bat, and you’re far less likely to need legal help with debt collections in the long term too!
Request payment upfront
If you are working on a big project that will require a lot of work from you or your team. Then it really is best to ask for an upfront payment, or at the very least a sizeable deposit. That way, you can get to work without having to worry too much about the financial side of things. It will also help to keep your business cash flow in the health zone, which is always a bonus for small companies.
Offer flexible payment options
Clients are more likely to pay on time if you make it easy for them by offering them a number of payment options including bank transfer, credit card, and possibly even cash. Many clients want to pay on time but they may need to use a credit card in order to do so, for example, so if that option isn’t available to them, they will have no option but to delay and your business will suffer as a result too. Don’t let that happen and be as flexible with payment options as you can.
Send a reminder
Often clients don’t pay an invoice not because they are avoiding doing so, but because they are busy and it has been overlooked, so sending a polite reminder is often all that is needed to nudge them in the right direction and get your business paid.
Offer a discount
If a client is proving difficult when it comes to paying, something that can convince them to cough up a bit faster is to offer say a five percent discount. Often, this is too attractive an offer to pass up and they will go ahead and pay you where otherwise they may not have made it a priority. This is a particularly good tactic to employ if you need to replenish your cash flow fast.
As you can see, getting clients to pay on time doesn’t have to be a huge battle, simply get strategic about it, and your cash flow won’t suffer unduly.