Goodbye Late Payments: Essential Tips to Follow Up For Client Payments

Are you still receiving Late payments from your clients… ?

………… I am sure that many of small business owners do!

This is a problem most of the small businesses are conversant with but have been ineffective in finding a right solution. Every entrepreneur, businessman, freelancer, consultant, etc. goes through this quite frequently and perhaps daily. Ramifications of this are not worth mentioning as it takes a heavy toll on the business.

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Ensuring timely payments are essential for the success of any business whether it is products or service based. Getting paid on time lets you achieve the desired outcome from the business. Also,  it sustains the business in the long run.

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Here are some tips to follow up payments so to avoid a big deterrent to a healthy cash flow.

1) Effective Reminder Mail that actually works:

It is crucially important to set the first follow-up for every client, it must be in the form of a gentle and effective reminder mail. Set this reminder one day before the due date of the invoice. Using an online invoicing software like Invoicera can set the automated reminders.

payment reminders


2) Have one-on-one communication:

Always speak to the client in a positive tone. Go out of the way to help the client and make sure he is completely satisfied. Having a one-on-one communication with the client on a regular basis helps in gauging the satisfaction level of the client.

Vector businessman online communicatiion connection business


3) Access To Billing Statements:

Sending out billing statements to the client along with a gentle reminder of the past dues is essential for keeping the payment cycle short. Giving access to such statements through a self serving portal is also useful in saving time and resources.


4) Follow terms and conditions:

Depending upon the relationship the client has, the payment policy and terms & conditions is defined.  All the details regarding the due date and other payment terms must be added to the invoice before it is sent out to the client.

late payments avoid


5) Understand the Credit History:

While dealing with any client, it is important to understand their financial strength and credit history. It is not important to follow-up multiple times for payments if client has a good payment track record. In such a scenario, it is advisable to be patient with the client, who is most likely to pay you on the due date.


6) Payment Discounts is required:

This is another innovative way to follow-up for clients. Early payment discounts help in building strong relationships with the client. One can train the staff member to offer an early payment discount on a follow-up call, a week before the due date.

getting paid faster


7) Customer Awareness Management:

Follow-up communication can be used as a medium to make the client aware about the benefits of making on-time payments. These can include early payment discounts, better price and priority delivery etc. Similarly the clients must be communicated about late fee and interest penalties associated with late payments.Top 7 Tips to Follow Up For Client Payments


8) Set Greeting Message:

Sending out thank you messages is essential to help foster this relationship. This could also be formed of personalized call from a sales personal, acknowledging that the payment has been received. Sending out “Thank You” messages can help foster the happy client-vendor relationships.

TO THAT END

……… Online invoicing has taken over the manual processes, many business owners NOW ensures that the payments are flowing on time. The online invoicing include such a powerful feature to enhance the usability and increase overall efficiency. Invoicera brings quality services and builds happy relationships in the timely flow of payments.

follow up payments

WHAT’S MORE

There was a strong need to include such a powerful feature that makes online invoicing and billing essential in it’s true sense. Though online invoicing has taken over the traditional billing, the basic purpose of invoicing gets defeated when payments are not received on time. Invoicera helps you to reduce the duration of payment cycles and Get Paid Quicker.

Read More: How To Follow Up For Client Payments

Online invoicing software helps you keep a track of each and every invoice and penny pending from the client’s ends. Analyzing detailed financial reports can helps you understand the status of each of the client outstanding and resolve all issues including delayed payments.

 

Admin

Veronika Tondon is a business enthusiast with extensive experience in Invoicing & Payment Process. She has 7+ years of experience in Invoicera, the leading cloud-based invoicing solution as Invoicing Consultant. Sound knowledge in business process execution, offers end to end solutions for complete automation of business processes and AR/AP processes. Contact Veronika for your invoicing requirement.

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