Why Don't Your Customers Pay on Time? How To Get Paid: Understanding the perspective

Managing your cash flow as a business is essential to success. Even the best branding and customer service won't be enough to keep your doors open. We've already discussed how to build up your bills to be short and clear so that you get paid fast, as well as how challenging it may be to collect on unpaid invoices that are "sent but not yet late."

We're going to investigate the root cause of your clients' late payments today.

Do you accept payments made online?

Let's face it: checks are no longer used. You can accept electronic payments in a variety of methods, often at very little cost, making it simpler for your customers to pay you.

To encourage clients to pay straight away, you should provide electronic invoices with a "click here to pay" link in a prominent place.

Are your payment terms too extensive?

Do you have a net-15, net-30, or net-90 payment deadline for your invoices? Your clients will understand different priorities depending on the terminology you use.

Don't you prioritise the expenses that are due right away above those that are due in a month or longer when you pay your own bills at home? Similar corporate practises are common. Set your conditions as close to due upon receipt as you can when creating your contract with your client. If you have to keep them out longer, think about giving the customer a discount if they pay faster.

Do your customers have problems with cash flow of their own?

Do you frequently observe that the same client has a number of past-due invoices or that the same client always pays at the very end of the invoice term? They may not be doing their accounting properly, but it's also possible that they are experiencing problems with their own cash flow.

Do you currently have a billing cycle?

Certain dates and times are set aside by some large businesses for the payment of all outstanding invoices. Ask your contact for advice on the ideal time to submit your invoice if this is the situation with your client in order to guarantee prompt payment.

Undoubtedly one of the most annoying aspects of running a business is not being paid for the work you've done. There are tactics you may employ to persuade your clients to pay you first, such as making electronic payments simple for them, issuing bills near to the dates of the payment cycle, and delaying the release of the finished product until the client has paid you for it. But if you can handle it, getting paid while you work is always the most straightforward approach to manage your financial flow. You may be able to select consumers who can pay right away by telling customers up front about your payable upon receipt terms.

Consider the justifications your clients have given you for being late for a moment.