Six Tips to Get Paid Faster

Business

Collecting your accounts receivable is never an easy task. Clients might have a lean month, or they might not be very good at managing their cash flow. If you've ever faced trouble collecting your receivables or are just starting and are wondering how to make it easier, here are six tips that can help you speed up the collection process.

1. Use Kindergarten Manners

Our parents and teachers always stressed how important it was to use our manners. When you're asking someone to give you the money they owe, it's even more important. Including the words "please" and "thank you" in your invoices politely reminds your clients that they owe you money and increases your chances of being paid on time. 

2. Always Customize the Details of an Invoice

While it appears to be easier for you to invoice from a template, a boilerplate invoice may cost you even more time and money down the road. Invoices should be customized for every client in order to account for the way they conduct business. Discuss what works best for each client and what information makes it easier for you both. Some items that can be customized are:

  • Payment terms
  • Payment details
  • Description of services or goods

3. Use Simple, Easy to Understand Language

A term that makes sense to you may not make sense to one of your clients. The best way to ensure that there is no confusion is to use the simplest language possible. This allows anyone who views the invoice to understand the service you provided, how much was charged, and when payment is due.

For example, "five business days" is much more clear than "net five business days.” A client would need to clarify your definition of a net business day because it might be different than theirs.

4. Incentivize On-Time Payments With Rewards

You might be able to entice your clients to make their payments on time by giving them an incentive. For instance, you could take 1% off their bill for on-time payments. This way, they can take control of their savings, and you save by reducing your collection times.

5. Always Charge a Late Fee

One of the most important tips for accounts receivable is to ensure you always charge a late fee for delayed payments. Late fees can be a set amount, a percentage of the overdue bill, or you could charge interest on the sum. Studies have shown that when you include the keyword "interest" in your payments terms, you receive full payment 92% of the time.

6. Include Multiple Payment Options

A good practice is to give a client as many ways as possible to make a payment. There are several options, such as lines of credit, buy-now-pay-later financing, traditional credit cards, checks, or any of the latest and greatest payment technologies that make it easier for you to collect.

Dueplex is a professional invoicing and payment platform designed to reduce your business's collection times, improve your relationships, and lower the costs of running your company. 

Six Tips to Get Paid Faster

Six tips that can help you speed up the collection process.

November 15, 2021
Business

Collecting your accounts receivable is never an easy task. Clients might have a lean month, or they might not be very good at managing their cash flow. If you've ever faced trouble collecting your receivables or are just starting and are wondering how to make it easier, here are six tips that can help you speed up the collection process.

1. Use Kindergarten Manners

Our parents and teachers always stressed how important it was to use our manners. When you're asking someone to give you the money they owe, it's even more important. Including the words "please" and "thank you" in your invoices politely reminds your clients that they owe you money and increases your chances of being paid on time. 

2. Always Customize the Details of an Invoice

While it appears to be easier for you to invoice from a template, a boilerplate invoice may cost you even more time and money down the road. Invoices should be customized for every client in order to account for the way they conduct business. Discuss what works best for each client and what information makes it easier for you both. Some items that can be customized are:

  • Payment terms
  • Payment details
  • Description of services or goods

3. Use Simple, Easy to Understand Language

A term that makes sense to you may not make sense to one of your clients. The best way to ensure that there is no confusion is to use the simplest language possible. This allows anyone who views the invoice to understand the service you provided, how much was charged, and when payment is due.

For example, "five business days" is much more clear than "net five business days.” A client would need to clarify your definition of a net business day because it might be different than theirs.

4. Incentivize On-Time Payments With Rewards

You might be able to entice your clients to make their payments on time by giving them an incentive. For instance, you could take 1% off their bill for on-time payments. This way, they can take control of their savings, and you save by reducing your collection times.

5. Always Charge a Late Fee

One of the most important tips for accounts receivable is to ensure you always charge a late fee for delayed payments. Late fees can be a set amount, a percentage of the overdue bill, or you could charge interest on the sum. Studies have shown that when you include the keyword "interest" in your payments terms, you receive full payment 92% of the time.

6. Include Multiple Payment Options

A good practice is to give a client as many ways as possible to make a payment. There are several options, such as lines of credit, buy-now-pay-later financing, traditional credit cards, checks, or any of the latest and greatest payment technologies that make it easier for you to collect.

Dueplex is a professional invoicing and payment platform designed to reduce your business's collection times, improve your relationships, and lower the costs of running your company.