Waiting for client payments can be frustrating. Instead of passively waiting, implement these seven strategies to ensure faster payments and improve your cash flow.
* **Clearly Define Payment Terms:** Don’t leave payment deadlines ambiguous. State clearly on each invoice whether payment is due “Net 15,” “Net 30,” or “Due on Receipt.” Clear terms eliminate confusion and set expectations for timely payments.
* **Accept Credit Card Payments:** In today’s digital age, accepting credit cards is essential. If you’re not already doing so, you’re missing out on opportunities to get paid quickly. Consider using a merchant account service like Card Service International. Alternatively, a PayPal account offers a free and easy way for clients to pay via credit card.
* **Utilize PayPal’s “Request Money” Feature:** Simplify the payment process for your clients by sending a “Request Money” link directly from your PayPal account. This eliminates the need for them to write and mail a check, making it easier for them to pay you promptly.
* **Email Invoices:** Even if you’ve already sent a PayPal request, always email a copy of the invoice. Software like QuickBooks allows you to send invoices directly from the program with your email address as the sender. This provides clients with necessary documentation and ensures they have all the information they need.
* **Use Unique Invoice Numbers:** Assign unique invoice numbers to each bill. This prevents confusion and avoids situations where clients might discard an invoice, thinking it’s a duplicate.
* **Ensure Availability:** Make sure your contact information – including your physical address, email address, and phone number – is clearly visible on every invoice. Promptly address any client inquiries. The person handling payments may not be your primary point of contact, so easy access to information is crucial.
* **Invoice Off-Cycle:** Instead of invoicing all clients at the end of the month, try invoicing at different times. Invoicing at month-end means you are competing with many other vendors for your clients’ limited cash flow.