Strategies for Getting Paid on Time As A Small Businesss

If you’re an introvert like me, one of the most awkward parts of being a small business owner is asking for money. It’s strange how asking someone to pay for goods or services that have already been rendered can seem like an imposition, but it’s really not. It’s part of the terms a customer or client should expect when requesting a particular benefit.

That said, especially in service fields where there may be a grace period within which someone can pay, now and then, customers will try to do all they can to pay at the latest possible moment they should.

This is totally legal and within their rights, of course, especially if you’ve both agreed to those terms ahead of anything being rendered. Yet it’s also your right to incentivize, persuade, and even gently convince clients to pay before the invoice deadline, so as to benefit your cash flow and close the contract.

In this post, we’ll discuss some methods for doing that without feeling like you’re pushing boundaries.

In This Article:

3 Ways to Speed Up Invoicing 

Here are three things you can do to speed up the time between invoicing and getting paid. 

Offer a Discounts To Those Who Pay Quickly

You may consider giving folks a little bit of a break on the price if they take care of their bill sooner rather than later, because sometimes that small incentive is all it takes to get people to act fast. After all, who doesn't like saving a bit of money? And if they can do that just by paying you quickly, it often feels like a win-win for everyone involved. 

This approach will certainly help with your cash flow, getting that money in the door without having to wait until the very last minute, which can help you cycle your clients more readily, and improve your business operations and planning.

Have Your Field Staff Empowered With Payment Provisions

It can smooth things along if your team out in the field has the tools and authority to handle payments right then and there, because sometimes when a service is fresh in someone's mind, they are more inclined to just get it settled. 

Giving your staff the ability to collect payments on the spot means you’re never waiting around for invoices to be sent out and then hoping they get paid on time, which just streamlines the whole process and helps you avoid follow-up calls later on. Using an all in one payment terminal you can give to field agents will be a worthwhile improvement.

Use A Deposit System

Setting up a system where you ask for a portion of the payment upfront, like a deposit, can be a good choice, especially for bigger projects or services that involve a lot of planning and resources on your end. 

This way, you have some commitment from the client right from the start, and it helps cover your initial costs and secures their serious intent to move forward, which can save you a lot of hassle and potential losses if anything changes. It also means you are not putting in all that work without any initial financial commitment, which just makes good business sense and protects your interests.

With this advice, we hope you can convince clients to pay before the payment deadline. Check out more business tips to help you keep things running smoothly!