How to Get Invoices Paid Faster
Most businesses plan and operate their finances around set payment dates, looking at what money’s coming, and what’s on its way out. As a result, the consequences of multiple clients being late with their invoice payments, can result in cash flow issues for their business.
Not to mention the hassle surrounding chasing clients that are slow to pay their invoices, as it can take up valuable time and resources.
How long should invoices take to be paid?
If preferred, businesses can agree an invoice date with a customer that suits both parties.
Once an invoice has been issued, legally the recipient has 30 days to fulfil the payment.
By setting a specific date on the invoice itself (that is marked clearly), you’re encouraging the client to pay on time.
Top Tips for Speeding Up Invoice Payments
Although on some occasions late invoice payments can’t be avoided, we’ve listed a number of tips for you to employ to try and eliminate them.
- Clear payment info and terms
Ensure that your invoice is clear and has all the necessary information your customer needs to make the payment, such as your bank details.
- Send your invoice ASAP
The sooner you send your invoice, the sooner it should be paid.
- Shorter payment terms
Despite the general rule of 30 days, if you set the payment deadline earlier, a good client will pay on time, and you’ll receive your money relatively quickly after sending out the invoice.
- Use invoicing software
By utilising invoicing software, you can set “read receipt” notifications, so that you know if the recipient has opened/read your invoice. This is particularly useful if you end up having to chase them further down the line.
- Add overdue fees
You can actively encourage clients to pay on time by adding late payment fees to your invoice. Some customers might be put off by this, but it could be worth considering if invoices aren’t being paid on time.
- Send to the right people
In some instances, invoices can be paid slowly or not at all because it hasn’t been sent to the correct person or department. Make sure you’re checking thoroughly who you should be addressing the invoice to, so this doesn’t happen.
- Don’t be afraid to chase
Occasionally, you might need to follow up on your invoices with a reminder, which is perfectly acceptable. The likelihood can often be that someone has forgotten about making the payment. If you need to chase an invoice multiple times though, be tactical in how and when you do this.
Hassle Free Payments with FastPay
Getting your invoice paid can be a huge headache for some businesses and if you’ve got a broad range of clients, this can be even worse when they don’t pay.
FastPay offers a reliable and efficient regular payment collection service that minimises the stresses of doing this yourself.
To find out more about the services available or to speak with a friendly advisor, get in touch with us today.
