If there is something that annoys all entrepreneurs, you have to wait for your money. You have completed all your work, delivered products or services, sometimes even advanced material costs, but payment takes weeks to arrive. In the meantime, you may even be short on cash and in extreme cases you even need one entrepreneurial credit to remain liquid. All the hassle you want to avoid. Therefore: ten tips to get your bills paid faster!
1. Quick billing and quotation
A quick payment starts with you. Make sure to get your quotes and invoices out as soon as possible. The earlier you invoice, the sooner you can expect your money. In addition, customers are also more likely to pay an invoice faster if they receive it faster. "You don't keep me waiting, then I don't keep you waiting." That idea.
2. Communicate payment term
Did you know that invoices in the Netherlands are average more than five weeks remain open? Communicate your payment term right from the start and put it on the invoice. Provide clarity, which is pleasant for you and your customer.
3. Checking new customers
Do you know whether that new customer who places a large order is creditworthy? Nowadays you can use the creditworthiness checking, very handy if you are going to do big business with, for example, business partners. Better safe than sorry!
4. Make payment easy
Do you let your customers manually transfer money to a foreign account? Then you also ask for late payments. Provide an iDeal link with which customers can easily pay from their mobile device. Simplicity provides speed.
5. Pay in advance
Also not surprising if you are going to provide comprehensive services or if you have to buy a lot of material yourself: ask for a deposit or even full payment in advance. The incentive to pay quickly comes to your customer: the sooner he pays, the sooner you will start with his request.
6. Working on customer relationships
Customers tend to pay faster to a company or entrepreneur with whom they have a good relationship. So call your customers after a service or product has been delivered and invest in the customer relationship. You don't even have to name the outstanding invoice. Ask if everything was to your liking and if they have any improvement tips for you. Good relationships work wonders.
7. Send pleasant memories
Does an invoice remain open longer than expected? Then do not come with a warning in threatening language. Unless you never want to see customers again, of course. Sometimes a customer simply forgets to pay an invoice. A pleasant, informal memory is then by far the best option. Threats rarely help.
8. Keep administration
Do you always have easy insight into the status of all your invoices sent? If you don't know who else is giving you money, you can't make it faster. Provide clear administration that keeps you constantly up to date, for example with a accounting package. Then you can structurally take appropriate action at the right time.
9. Be picky
Not every entrepreneur can afford it, but if you can choose who you want to have as a customer and not, try to estimate whether a customer can pay quickly. Customers who have paid irregularly or late in the past, of course, run the risk of doing this again.
Finally, the horse resource: credit insurance. It costs you money, but ensures that you get your invoices reimbursed if the other party goes bankrupt, for example. Only recommended if you send many invoices to different parties and if the amounts are significant (thousands of euros each).
Do you know any additional tips to avoid late payment of invoices? Leave your comment below!