Waiting for client payments can be frustrating. Instead of passively waiting, take control with these seven proven strategies to accelerate your accounts receivable and improve your cash flow.
1. **Clearly Define Payment Terms:** Ambiguity leads to delays. Explicitly state your payment terms (e.g., Net 15, Net 30, Due on Receipt) on every invoice. Ensure clients understand when payment is expected.
2. **Offer Credit Card Payments:** In today’s digital economy, accepting credit cards is essential. Consider using a merchant service or, at a minimum, set up a PayPal account. This provides clients with a convenient and immediate payment option.
3. **Utilize Payment Request Links:** Simplify the payment process. Platforms like PayPal allow you to send direct payment request links. This eliminates the need for clients to write checks and mail them, making payment as easy as a few clicks.
4. **Email Invoices Consistently:** Use accounting software to email invoices directly to clients. This ensures timely delivery and provides a digital record. Even if you’ve sent a payment request link, a detailed invoice provides necessary backup information.
5. **Implement Unique Invoice Numbers:** Prevent confusion and potential rejection of invoices by assigning unique numbers to each one. This helps clients easily identify and track invoices, reducing the likelihood of duplicates being discarded.
6. **Ensure Accessibility:** Prominently display your contact information (physical address, email, and phone number) on every invoice. Promptly answer client questions. Remember that the person processing payments might not be your primary contact; make it easy for them to reach you.
7. **Invoice Strategically:** Avoid invoicing at the end of the month when clients are likely overwhelmed with bills. Instead, invoice mid-cycle to reduce competition for their funds and improve your chances of getting paid faster.