Did you know 93% of businesses experience late payments from clients?
A lot of businesses run on thin margins, so late payments can really hurt. Here’s how to get clients to pay on time and to avoid frequent late payments.
Set terms in advance.
Be upfront with your clients about payments. Use a contract that spells everything out.
- When you’ll invoice
- When payments are due
- How to pay you
- Penalties for late payments
Contracts protect both your clients and your business.
Require deposits from new clients.
Deposits protect you from flaky clients, and they also establish the payment method you’ll use moving forward. And, deposits are usually delivered in advance, so they nip late payments in the bud.
If you feel like asking for a deposit is asking too much, include a discount for early payment.
Make it easy for clients to pay.
The easier you make it for your clients to pay, the more likely they are to do it on time.
A few tips:
- Offer online payments (from mobile too)
- Allow credit card auto-payments
- Send text or email reminders with a link to pay
Want more? Here are 5 more ways to get paid on time, every time.