How To Get My Invoices Paid

You work hard, so getting paid shouldn’t be.

Cash flow is the lifeblood of any business, and timely payments are key to keeping things running smoothly.

Here are our top ten tips for getting your invoices paid on time.

1. Set clear payment terms

Before you start working with a client, make sure you have clear payment terms in place.

Tell them the payment due date, how they should pay you, and if there are any fees for late payments.

Communicate these terms upfront in writing and include them on every invoice you send.

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2. Send invoices promptly

The quicker your client gets the invoice, the faster they can pay.

Try to send invoices right after delivering goods or services. Using invoicing software can help you automate this process and ensure accuracy.

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3. Use professional invoicing software

Invoicing software helps you create clear and easy-to-read invoices.

It also lets you keep track of which invoices are paid and which are not. Features like automatic reminders and connections to accounting systems can streamline the process. Popular options include Quickbooks and Xero.

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4. Offer several payment options

Make it easy for your clients to pay you by offering different ways to pay, like:

• Credit cards
• Bank transfers
• Checks
• Online payment systems like PayPal.

The more options you offer, the easier it will be for clients to make prompt payments.

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5. Send payment reminders

If a payment is overdue, send a polite reminder.

Sometimes, clients just forget, and a friendly reminder can help to get things moving. Use invoicing software to set up automatic reminders so you don’t have to keep track of them yourself.

If reminders don’t work, try calling the client. We know nobody likes this type of call, but to make it easier, try calling early in the day and remain polite and professional but firm.

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6. Encourage early payments

Encourage your clients to pay early by offering small discounts for early payments. For example, 2% off if they pay within 10 days. This can motivate clients to pay sooner, improving your cash flow.

You can also charge a fee for late payments. This is a statutory entitlement. The Small Business Commissioner offers a handy interest calculator to work out what you might be owed if a client pays late.

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7. Build strong client relationships

Good relationships with your clients can help you get paid faster.

Keep in touch regularly, understand how they handle payments, and be quick to respond to their needs. When clients like working with you, they may be inclined to prioritise your payments.

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8. Use invoice finance

To get your invoices paid faster, you can use an invoice finance provider like Penny. Here’s how it works:

1. Register an account
2. Submit your invoice
3. Get paid within 24 hours.

When your customer pays, we get paid.

This helps you get cash quickly without waiting for lengthy payment terms.

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9. Implement a collections process

For consistently late payers, have a collections process in place.

Start with friendly reminders. If payments are still overdue, use more formal methods to collect the money. Be firm but fair, and keep track of all communications.

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10. Consider legal action as a last resort

If a client still won’t pay after all your efforts, you might need to take legal action.

This should always be a last resort because it can harm your relationship with the client and incur legal fees. Think carefully about whether the amount owed is worth the potential cost and consequences.

Getting paid on time is important for a healthy cash flow. By setting clear payment terms, offering different payment options, and considering invoice finance, you can streamline your payment process and get paid promptly.

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