7 Ways to Get Paid Faster by Your ClientsWritten by Marya Sutimi on June 05, 2023
Getting paid on time is one of your business’s main goals to keep it afloat. When you get paid faster by your clients, your business can manage your cash flow more effectively so you can meet your financial obligations with a chance to invest in some other fields for your business growth.
Delayed payments from your clients can create domino effects for your business, leading to financial risks and uncertainty for you both individually and professionally. When payments are delayed, it may affect the fund you need to pay your employees or suppliers.
In this post, we’ll dive deep into ways to get paid faster by your clients, including why you need to get paid timely and how to streamline your payment process so your clients can pay you on time.
Why It’s Important to Get Paid Timely by Your Clients
Timely payments from your clients can ensure the financial stability of your business, as it allows you to cover your expenses to sustain your business operations. Not only does it give you security for you as a business owner, but it also allows you to cover all your business expenses which can gain a good reputation as a business for your supply chain.
When your clients can pay for your goods and services on time, your business can meet all your financial obligations promptly without worrying about late payment penalties or any disruptions that may hinder your business operations.
Getting paid faster by your clients means that your business can plan your budget effectively, as you can allocate your financial resources to meet your financial commitments timely.
Having your clients pay your business on time means that you can maintain a good relationship with them and anyone involved within your business line, from your employees to your supplies. It is essential to maintain your financial stability, which can be a make or break for your long-term business plan and operations.
How to Get Paid Faster by Your Clients
Now that you understand how getting paid faster by your clients can benefit all your business entities, it’s time to talk about some effective strategies to ensure you can get paid faster for your goods and services.
In order for you to get paid on time by clients, it requires proactive measures and effective communication from you as a business entity and clients as your customers. So, here are some ways you can implement in your business to speed up client payments!
Set clear and fair payment terms with your clients
Before starting a project with your clients, it’s important to create a written contract that involves the payment terms so both parties can understand their rights and responsibilities in your partnership. You can ensure clients sign the contract, so it can provide legal protection for both parties once the project kicks off.
Including payment terms in the contract will assure you that you and your clients have a clear understanding of the payment expectation. It also eliminates ambiguity from your client’s end, which can reduce the likelihood of misunderstanding or any possible payment disputes like late payments.
Add some payment policies in the outline of your contract, including the payment due dates, accepted payment methods, and late payment penalties. In addition to that, you can also offer an incentive or discount for early payments to motivate your clients to pay the invoice faster.
When the payment terms are clearly outlined in the contract, it will be easier to enforce payment if your client fails to fulfill their obligations on time. And when you put the agreement in writing, you can also support your claims and pursue appropriate actions when it happens, such as collections, late payment fee implementations, project terminations, to legal recourse if necessary.
Request an upfront deposit before starting a project with clients
Another way to get paid faster by your clients is by adding an upfront deposit before your project kicks off. When your client agrees to put in a deposit, it means they commit to the project or the service that you offer and they are more likely to prioritize the completion of the transaction promptly to fulfill their part of the agreement.
In addition, an upfront deposit also ensures you have some compensation for your work and resources invested in the project, even when your client fails to pay you on time. If you want to implement this strategy, you can add a full amount of your retainer package as a part of the commitment.
Requiring an upfront deposit will also establish a level of accountability for your clients, which will encourage them to understand that they have a financial stake in your partnership and understand the consequences of a missed payment. As a business, you can also add project termination as a part of late payment penalties to encourage clients to proceed with the payment before the due date.
Send a detailed invoice in a timely manner
Sending an invoice is essential to ensure on-time payments from your clients, as it will serve as a formal request for payment that clearly states all the details, including the amount owed, the due date, and the accepted payment methods.
Invoices provide a documented transaction record, which is crucial for financial record-keeping and potential legal purposes if any payment disputes arise. You can use an online invoicing tool like InvoiceBerry to streamline the invoicing process for your business.
There are some benefits you can get from using an online invoicing tool. Apart from automating all the invoicing processes to ensure you can send your invoices on time, you can also customize them with your branding colors and styles. It can also improve customer service for your business, as you can also make it easier for your clients to pay your invoice faster by integrating your invoicing tool with online payment methods like Square or PayPal.
Add online payments to complete the transaction
The best way to make your client pay your invoice faster is by adding online payment methods to make it easier for them to complete the transaction. InvoiceBerry simplifies it by adding integration features with numerous online payment methods, making it easier for your business to accept payment online.
Whether you want to get paid by cash or using blockchain technology, you can integrate your InvoiceBerry account with some online payment methods like Stripe or CoinPayments.
Go to your InvoiceBerry dashboard, and click the “Settings” option, where you can head to the “Accept Payments” section to integrate your account with your preferred payment methods.
Regular follow-up for late invoice payment
Once you send the invoice, don’t forget to follow up. You can send an email separately to double-check with your client to ensure they receive your invoice. By doing so, you can personalize your follow-up communication to demonstrate that you’re aware of the details so you can reinforce the payment from their end.
When needed, you can also offer some assistance or clarification regarding the invoice or payment process, as sometimes clients require additional information before they proceed with the payment. Promptly addressing their concerns can help facilitate the payment, encouraging them to pay faster.
Implement late payment fees
The next strategy to ensure fast payment from your clients is adding late payment fees to your contract. The fees impose a financial consequence on clients who fail to pay on time, encouraging them to prioritize and settle their invoices promptly to avoid incurring extra expenses on their end.
In addition, late payments can disrupt your cash flow which can create administrative burdens in your finance. A late payment fee can help compensate for the inconvenience. At the same time, it could also cover any extra fee you might need to settle due to late payments with other entities.
Automate payment reminders
While personalizing follow-up emails can encourage clients to pay the invoice faster, you can also set the automatic payment reminder for late invoice payments on InvoiceBerry. Click the “Settings” section on your InvoiceBerry dashboard, and go to the Email Templates section to modify the template for late payment email reminders.
Automated payment reminders provide a professional approach to following up on late payments. It maintains a level of professionalism, which will ensure your clients perceive your business as organized and reliable. On top of that, you can also free up your valuable time that would otherwise be spent on manual follow-up for late payments.
Setting up automated payment reminders for your invoices will help you focus on more critical tasks while ensuring that the reminders are consistently managed in the background to optimize the timely payment from your clients.
Getting paid on time by your clients is one of the essential things to maintain your business operations, as accepting payment timely from your clients will help you manage your cash flow more effectively.
Late payment from your clients can create a domino effect for your business, as it can also affect your financial obligations, such as paying your suppliers and employees on time. It can tamper with your finances and hurt your professional relationship with other entities that help your business stay afloat.
Adding a specific clause regarding your payment terms in the contract can help you and your clients set clear expectations to minimize the chance of late payment from their end. In addition, using an online invoicing platform like InvoiceBerry can also help you streamline your payment process, making it easier to get paid faster by your clients.
You can now sign up for a 14-day free trial on InvoiceBerry, and see how having an online invoicing system can help you tremendously to accept payment faster from your clients. So, are you ready to streamline the payment process for your business and get paid faster by your clients?