You can’t deny the fact that you are scared of your customers for late payment or you might have already suffered for not getting payment from your client even after working diligently.
Every business owner is worried about it, and they all wish that the clients pay their bills on time every time. They have some planning to do to make that a reality. Don’t worry further. Here you will get 7 useful tips to make your customers pay on time.
7 Useful Tips To Ensure On-Time payment
Below are 7 tips following which you can make your clients pay on time.
Maintain Great Relationships With Your Clients
Be friendly with your customers always and let them feel that they are valued. Although some of them are hard to tackle, still don’t let the smile vanish from your face while talking to them. It’s quite obvious, especially when you sell services to people that they keep on demanding for some features which are not feasible. Explain to them politely.
Show them your passion and dedication towards the work. Go out of your way and also offer some bonus services to attract customers.
Do you know when will you get paid on time? When your clients feel that they are more than just another revenue earning machine! Never forget that humans want attention from everyone. They will get delighted when you have some ‘additional offers’ which you don’t offer others at all. The relationship will get easier when you address him/her by name. It breaks the barrier of formal seller-buyer relation.
People are willing to get out of their ways for you if you do it first for them. In psychology, this is known as the principle of reciprocity.
Maintain a contact list of the customers. Send him wishes on special days. To make them feel special, send personalised gifts or greeting cards with handwritten notes which would be beyond their expectation. These small gestures will pay off when their payment time arrives, or when they need another service. The bonding will only become stronger.
Prepare the Bill on Time
It is needless to say that sending the invoice on time will increase the possibility that your customers will make timely payment. It also shows you are punctual.
Any form of delayed correspondence, whether it is sending the bill for work, missing a deadline for part of the work, will prove that you are not serious enough, and timeliness doesn’t matter to you.
If you can’t meet the deadlines, the clients will get a valid reason to pay late. At the beginning of your talks related to work, make it clear what your clients need on their invoice to pay you. Keep some formats handy that include the breakups of the charges they will be paying you, including the GST rate list.
Since this is a new system, it is mandatory that GST explained in a simple manner. Otherwise, they may refuse to pay.
Many modern clients prefer to go digital, and this is an easier way, indeed. So, carry a mobile device containing all the required information with you always. The most common trend is to utilise your smartphone to get all the necessary data and information anytime, anywhere.
Cloud-Based Services Are Great Alternative to Paper
Those days when the snail mail was the standard invoicing method are gone. Accounting software helps the individuals and the agencies to stay ahead with some advantages which you will not get in the earlier systems.
Set the alarm to remind you about your deadlines during the billing cycle so that you will not forget to make it for every ongoing project. Also, send automated reminders (more than once) to your clients 10 or 7 days before the due date.
Finally, when the payday arrives, clients will be able to make instant payment, and you will get your payment on time.
Mention the Payment Terms in the Contract
Any business relationship needs to set the terms so that both the client and service provider become aware of the system they are getting into at the initial stage.
Include the late fee payment penalties if they apply. Also mention the inputs from the client that you have promised to serve along with the respective charges. A clear contract guideline will not create any misunderstanding halfway, ensuring timely payment because nobody wants to pay a late fee.
Formal contracts are essential for systematic work and to avoid an unnecessary hassle in between. Even if you are working with the same client, again and again, the contract is necessary to maintain a healthy relationship. This is the starting point of your work. For the worst cases, where you need to take legal steps to get the payment, a verbal contract will not work.
Upfront Payments
The customers may not be ready to pay 100% upfront, but you can negotiate them into making a down payment. Make a contract to get payment periodically instead of getting the whole after completion of the job. This will be beneficial for both of you. You will get the payments for the modules you have completed, and partial payment will be easier for the payer too.
Deliver Your Work After Getting the Full Payment
Although it does not sound good to hold the work for a warm client-agency relationship, follow this if you have suffered from not getting paid on time before, particularly from this client.
After completion of the project, inform your client and give him a preview of your work. Send the invoice. If they need it really, they will pay you on time and appoint you again for a different project when needed.
This is a win-win for the two. You will get full payment, and your client gets their work done within the due date.
Design a Payment Schedule
Making a particular payment schedule is imperative. Especially for the long term project, you should follow a schedule to get payment periodically. Set a payment calendar and send it to the client. This way, both you and also your client will not forget about the payment date.
You are working for your client, to get paid. So, make sure in every way possible that the payment will be hassle-free and you would be able to maintain a healthy relationship with your client as well.