Drafting a contract with clear payment terms is the first step to ensuring your get paid on time.

How To Make Your Clients Pay For Their Invoices Faster

One of the most uncomfortable and awkward situations in any business is having to remind your customers about paying their invoices. It’s even a tougher challenge requesting instant payment without the conflict of additional late payment fees or delaying product or service delivery.

To get yourself out of such a situation, here are a few ways to help you get your clients to pay their invoices or bills on time or even earlier.

Have a clear contract from the start

Drafting a contract with clear payment terms is the first step to ensuring your get paid on time. The contract should outline the essential details of the transaction, such as deadlines, fees, terms, including when invoices are sent and how long the client has to pay. All parties should consent to the terms of the agreement before work starts. 

Doing this will allow you and your clients to be in sync concerning payment terms. An invoice is not a legally binding document, but it can protect your business from potential invoice disputes if you have a contract.

Make payments easy and convenient for your clients

You can make payment for your clients easier by offering different payment options. The easier it is for your clients to pay their invoices or bills, the less likely you will have problems with late payments.

Accepting different payment options gives clients no reason for late payments. Some clients may prefer credit cards, checks, or online payment systems like eCheck, and others may prefer a direct deposit. You can read more about echecks here.

Invoice your clients immediately after the work is done

Once the project is finished, send your invoice immediately. This helps link the completed work to the invoicing and reduces possible waiting time.  Ensure that the invoice clearly states that you are billing your client and include your contact information and the payment terms.

You can also choose to send the invoices through accounting software to avoid them getting lost in the mail. Sometimes the client may need you to revise or edit an invoice, and using these systems like cloud-based invoicing software may make the process faster and keeps your bill at the top of their mind, therefore no chances of late payments.

Also, remember to be polite in your invoice; saying thank you and appreciating payment reinforces your relationship with you and your clients. Be friendly, and they may return the favor and pay your invoice on time.

Stick to a regular payment schedule

If your client expects your invoice on the 1st and 14th every month, ensure you send your invoice on those dates. Doing this will reduce any confusion as to when payment is due, and with a regular payment schedule, it could be the difference between getting paid on time and not getting paid.

Provide discounts for early payment

You can provide discounts to clients who pay their invoices before the due date. The discount can be a percentage of the total invoice amount, which often adds up for clients as a cost advantage. For example, a 5% discount on the whole amount may encourage your clients to pay earlier.