In this article we give you some tips to help your business suffer less when you have money pending collection.
For example, you can offer discounts for those who pay you on time or use accounting and invoicing software to help you manage your cash flow.
When you sell something in your business, you build up credit. The only exception is in retail establishments, where payment is immediate.
But building credit means you have to wait to get paid, and you'll likely end up having to call in that payment.
Do you want to know how to simplify your life central african republic email list and make it easier for your clients, especially in these times when talking about money is complicated and being left-handed can be very useful?
Here are eight ways to prevent your business from suffering if you're owed money (and get paid on time). They're easy to implement and used by businesses around the world, so it's worth trying them out, right?
Use a debit card reader
Is visiting a client's premises part of your daily business? If so, why not request payment as soon as the work is finished or when the goods have been delivered?
You can do this using a debit card reader. To do this, check which companies offer this service in our country.
These devices connect to your mobile phone and authorize payment immediately.
Typically, you pay a small amount for the purchase of the reader and then a percentage (usually 2-3%) for each transaction.
TIP: If you are concerned about this cost, you can always charge a little more to absorb it.
Use accounting and billing software
If you use accounting and invoicing software , you will not only be able to issue and send invoices with just a few clicks, but you will also receive reminders to claim payments once the agreed deadlines have passed.
Nothing to do with issuing invoices by hand or having to print them in Microsoft Word or Excel.
This makes it much harder to know which ones are still pending. Even if you create a separate list, this will slow you down and leave you less time to do what you love: finding customers and offering them your best products and services.
TIP: With accounting and invoicing software you could issue, send and control invoices instantly.
Simplify your invoices
This is something that many companies overlook. Invoices should be A4 size and contain only the essential information. This includes an invoice number, your name and address, a description and payment terms.
If you are subject to VAT there are certain legal requirements you must comply with, but you should keep things as simple as possible.
You don't need to include your terms and conditions on the invoice, but it's a good idea to include a link if it's an electronic invoice (or a URL if it's a paper invoice).
Add the account number where you want the invoice to be paid to make the process easier for your client and get paid sooner.
TIP: You will not need to attach a cover letter with your invoices.
Offer discounts for early payment
A little trick you can try: make it clear to your customers that if they pay within 10 days, they will receive a 20% discount on the total amount of the invoice.
This helps encourage early payment. You have two options to finance this discount: take a 20% reduction in exchange for the time saved in claiming payment, or increase the price by 20% with the aim of discounting it for early payment.
Yes, it's a bit like charging interest for late payments, only the customer won't perceive it that way.
It's about using it as a bargaining chip to avoid having to complain and have delicate conversations when you don't get paid what you're owed.
TIP: Offer % off to customers who pay within 10 days.
Send weekly summaries
Try sending a weekly summary to your clients detailing the money they owe you.
With Sage 50 you have this function integrated to send the weekly summary automatically and prevent clients from forgetting what they owe you.
And make it clear in your terms of service or contract that this is a policy you apply to all of your customers and not just to that specific customer.
