This is something that all businessmen can agree on, that they want their customers to pay immediately. Wouldn’t it be an ideal position in any line of business if all your customers pay on time? Also, there will be no problem with your cash flow but unfortunately, business is not as ideal as we like.
In some cases, your debtors have to spend a lot of time to pay you. Being paid on time is critical for your business and meanwhile also impacts the cash flow operations. Therefore, it is very important for you to find ways to get paid on time. Here are 9 ways to avoid this hassle and get paid quickly, which will definitely help you in some places.
1. Provide multiple payment options
If you want your customers to pay on time, you should provide them with a variety of payment options. Because there are many customers who have an auspicious time, due to which they are late in paying you. To overcome that problem, you can give them online payment services like PayPal, Phone Pay, Google Pay, Paytm. This enables you to pay your customers quickly and easily. You also take credit card and debit card payments and allow customers who are short of money to use their debit card and can pay you online via credit card. You do not have to wait until they have money in their bank.
Currently, the UPI QR code is one of the best ways to get paid on time. With the help of apps like Vyapar, you can generate your UPI QR code, get it printed on your invoices and share it with your customers online. It will help your customers to pay in just a click without any hassle and your account will be credited in a second.
2. Send invoices immediately to get paid faster
Always remember to invoice first as soon as products or services are received by customers or sold by you. Make the sending invoice a daily and professional process as soon as possible. Because it sets an example for your customer to follow and pay the bill on time. Late invoice tells customers that you may not be worried about receiving payment immediately and may result in late and non-paying customers. However, remember that if your customers do not receive an invoice, they cannot pay it. One way to ensure that your customers have received your invoice is to follow up with a favorable payment reminder. You can choose an app like Vyapar for it and utilize it to share an invoice online along with a transaction message.
3. Send friendly reminder
Most people forget things and sometimes they are guilty of delaying payment. So it would be better if you remind him a little bit that there is a bill that has not been settled. You can do this via whatsapp, email or telephone call; You have to choose however you want to do it. Your debtors will have the opportunity to defend their actions, and you will probably find that the payment will be made soon. If you want to follow up on invoices, the best approach is invoicing software like Vyapar. Because it means that you do not need to do any of the following individually. This invoicing software also allows you to set automatic reminders and send them when the time is right.
4. Apply penalty on late payment
If you find that the incentives you provide are not working, you may also consider charging late fees or interest for late payments made by customers. Because it is true that not all customers will be motivated by the possibility of saving money. So sometimes in this type of situation, you have to take some drastic measures to get your hard-earned money.
The general opinion is that: If you want to consider late fees or interest, be sure to clearly state your late fee policy on the terms and conditions of your invoice. Nowadays it is not difficult to get it done. With the help of Apps like Vcredit you can simply maintain all your credits and get an automated report of credit and interest charged on it. You can also share those reports or statements with your customers to inform them about the interest and amount due to pay. Also send a reminder to your customers to inform them that if you do not receive your payment on time, you will start calculating interest or charging them.
5. Give incentives for early payment
If you oppose late installments, you can offer incentives for installments up to the date of the earlier installments to your customers. Promoting quick payments will speed up the payment process and help to build customer’s loyalty towards you. This will let customers know that they will have to pay at some point. If they know that they will get extra benefits by paying immediately, then they will hurry to pay it without losing it. These types of decisions will reward your customers for paying on time and give them more reasons to return.
6. Request customer to pay in advance
If you want to get paid quickly from your customers then this is also a good way. But remember to only request advance payment from new customers. Because advance payment gives the assurity to you about the money received and makes you responsible to deliver the product/services on time. This process helps you and your customers to build a better understanding that however you ask for advance payment but you provide the correct services on time. Now you can continue this tactic with new customers only because the regular customers have already gone through this process.
7. Take strict action on late payments
The big question comes here is how long you wait for payment and how to proceed with the process. Any collection process is going to cause adversity, and the situation will become tense. Before taking any action on the customer to recover the money, make sure that you know what is happening with the customer. If a decent customer is too late to pay the bill or forgets, any strict action can endanger future relationships, and then you can lose that customer. It is important to know that the customer you are doing this with is genuinely wrong and worth it. On the other hand, you can use the terms mentioned on invoices regarding interest on late payments as mentioned above. You can take the help of the legal department and file a complaint against the customers. Following this step strictly will work as a lesson for other debtors and nobody will delay in payments.
8. Establish personal connections with customers
If you establish a personal relationship with customers and know them well then you will find an easy route to collect payments. If no one has paid, if you have a good relationship with those customers, you will feel more comfortable asking them. When you feel you have to be more formal, it is easy to send a quick reminder to someone you know. Ensuring a personal relationship with your customers will definitely speed up your payments.
9. Offer payment in installments
It is also a very good approach for large payments or having a manufacturing business. Because splitting the payments over time not only helps improve your cash flow but also helps to reduce that large burden in lump sum amount slightly for your customer. If your work involves very large projects, definitely the amount will be also large for it and it is quite not possible to get paid at once. Therefore, save time by using a platform that allows you to set the number of installments and send bills to your customers automatically. This will keep the cash flow maintained and chances of getting payment on time will increase.
As we have told you in the article above, how will you get payment from your customers soon? Collecting money owed to every business owner can indeed be a daunting task, but there is no guarantee that either of these methods will prevent the late payment in your case, they will work with some customers. If you are wondering how you decide to minimize the problem of late payments, make sure that you are upfront about your payment terms and conditions in your customer agreements and your invoices, so that you can make your payment early and can achieve and improve your cash flow.
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