How to Get Invoices Paid Faster (Implement Tips to Get Payments)

Did you know that 94% of invoices are paid after more than 30 days? Now that sounds stressful!

However, it doesn’t have to be that way.

Most businesses rely on invoice payment to meet costs and keep a constant cash flow.

There are several ways to get started with invoicing like deciding payment terms, invoice terms, invoicing process, making invoice templates, referring to subject matter experts and much more.

Quick payments might assist your business’s financial situation and simplify the accounting procedure.

It’s critical to create and send invoices out immediately after finishing a job, provide simple payment options, and be prepared to follow up as soon as an invoice is past due to ensure that clients pay payments more quickly.

It can get challenging to follow up on invoices, but the good news is that if you use the following 9 suggestions, you probably won’t have to!

9 Tips to Get Invoices Processed

1. Request prepayment or deposits

Asking for a deposit or even full payment for work before you begin working on it is one of the simplest methods to ensure you obtain payment for your work and get paid faster. This is particularly useful and pertinent for more involved, lengthy tasks that may take several months to finish. 

Your ability to pay for project-related expenses, such as purchasing supplies or software, will be ensured by receiving a deposit upfront. Additionally, it will assist you in keeping a healthy cash flow to cover other business needs.

A prepayment or deposit is another incentive for a customer to make a timely payment of their amount. They are more motivated to keep a positive working relationship because they have already invested in the project. So, make sure your accounting department reminds the clients to make a prepayment to avoid cash flow problems.

2. Deliver simple, straight invoices

Your invoices may be partly to blame if you’re having problems getting clients to pay you on time. Make sure the layout of your invoice is straightforward. Poorly designed invoices might create payment delays as your clients are confused, and the necessary information may be difficult to obtain. 

Ensure that your invoices contain all the details a client needs to submit payment. The most crucial details should be obvious, such as the total amount owed and the payment due date.

3. Establish upfront clear payment terms

Before beginning the service, inform your client of the payment amounts and due dates to ensure you are both on the same page. They’ll be more likely to pay on time if you send them a quote that details the services, costs, and due dates.

Make sure to explain the specifics of your payment conditions on your invoice and to have a clear conversation about them with the client upfront. Your client will be aware of both the payment deadline and the consequences of paying beyond that date.

It’s less likely that there will be misunderstandings regarding your payment conditions later on when the payment is due if you provide this information to your client when discussing a project and signing the contract.

4. Direct invoice

You’ll be getting paid more quickly if you send out invoices requesting payment for your labor. As soon as the project is over, make it a habit to give your client an invoice; you can even include the invoice with the final version of the work.

Not only will the invoice be due sooner than if you waited for the subsequent billing month, but your client will still be thinking about the project, which may prompt them to pay the balance immediately. When you issue an invoice right, the work is still fresh in your mind, making it less likely that you’ll make an error that could delay payment. 

5. Allow automatic transactions

Allowing automatic payments for your invoices is a terrific method to get payments and uninterrupted cash flow from clients more quickly and to know when they will pay you. Clients who choose the automatic payment processing can elect to have an outstanding balance automatically charged to their credit card or debit card on the same day each month, paying you without having to do anything.

As a result, the client’s process is simpler, and you no longer have to wonder when you’ll get paid for your work. Quotes can be transformed into invoice payments automatically. It’s cool, but only possible if you use online invoicing. 

If you send a client a quote by email and accept it, the quote will automatically become an invoice. Then, your customer can click to pay the invoice immediately. This implies that you don’t have to wait till the work is finished before billing them, and you get your invoices paid faster.

6. Offer incentives

Offering reductions off the invoice amount or other benefits to customers who pay invoices on time or early can encourage them to make it a practice to pay their bills before the due date. 

If the payment is paid within 10 days of the invoice date, you can give a minor discount, like 2% off the invoice total. Although it may not result in significant financial savings for clients, it can help invoices be paid faster and demonstrate your appreciation for their business.

7. Maintain good relations 

Being polite never affects your business, despite what might seem like basic sense. The fear of shame or embarrassment frequently prevents faster payment of invoices. If your penalty structure consists of a single, fixed amount, it can prevent customers from paying the whole amount. There is little incentive for a client to act sooner if they know that the penalty would be the same whether they are 1 day or 90 days late. 

When you send invoices and contact clients about past-due debts, you must be courteous at all times. To express gratitude and make a positive impression, add a polite “please” and “thank you” to your invoice and the accompanying email. Maintaining a positive relationship with clients when their payment is past due will help you avoid sabotaging your chances of getting future work with the company.

8. Send payment reminders

We’re all prone to forgetting stuff and procrastinating occasionally. Sending a reminder a few days before or after the payment due date will help prompt your clients to send timely payments. Invoicing software is the ideal approach to follow up on invoices because it eliminates the need for any personal follow-up.

Most invoicing programs let you set up automated invoice reminders, but if you prefer keeping track of all your accounts in a spreadsheet and sending out emails by hand, we won’t judge you (well, maybe a bit).

9. Take action upon late payments

Don’t hesitate to contact a client if their invoice is overdue. To ensure your clients pay early invoices, you must diligently pursue unpaid debts. For early payment, send a quick email reminder to the customer the day an invoice is due, notifying them that payment is past due and reminding them of the methods of payment you accept. Follow-up regularly by phone calls or by sending notifications via phone and email until you get paid.

What if Customers Still Do Not Process Payments?

A business owner should be ready for certain clients to be late payers. Following are some actions to take when clients don’t pay their invoices on time:

• Pre-screening for financial stability with clients: Avoiding engaging with clients who are credit risks in the first place is one of the most crucial tasks. This entails determining the financial stability of potential customers before your sales and marketing staff contacts them.
• Charge late fees:Always charge late fees for delinquent bills in a small business. Establish a fee policy for late fees that you apply to all of your clients; ideally, this should be a documented policy on the contract or invoices.
• Take legal action: Due to the cost, length of the process, and anxiety it can bring, many small businesses choose not to file a lawsuit. However, if a small business attorney in your area has reasonable fees for mailing letters for unpaid invoices, get in touch with them. Sometimes, all it takes to get individuals to open their wallets is the prospect of legal action.

Get Paid 10x Faster with InvoiceOwl

InvoiceOwl helps you create easily understandable invoices and automates payment reminders invoices to make sure you get paid promptly.
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With InvoiceOwl, you can accept payments online and simplify payment collection. In hectic schedules, small business owners must execute various administrative responsibilities, including collecting money once invoices are sent. 

With the help of estimates and invoicing software like InvoiceOwl, business owners can easily manage all their invoicing needs in one app, including the capability to collect payments. With this accounting software, you can accept a wide range of payment methods using InvoiceOwl, including

• American Express, MasterCard, and Visa, the three most common credit cards.
• Apple Pay
• Google Pay

You can effortlessly collect money because your customers have access to such a wide variety of payment choices.

Get a FREE trial today to test it out for yourself.