Customer paying late payments are not doing any favour to businesses. Especially, if the business or company has just started or a start-up based initiative. Late payments cause an imbalance in the cash flow while simultaneously affecting future budgetary planning and also hampers business productivity costing time, energy and resources.
Irregular payment habits of customers propose challenges in on-going business and also makes it difficult in various aspects such as sell inventory, deliver goods, excel customer service and be an after-hours collection agent.
Let’s discuss few of the effective ways that might help to get back on payment-track and a brief solution to deal with slow paying customers.
Tighten Payment Terms:
As we all know that some people are just meant to be either late or late in completing tasks may it be late to work, not punctual to attend social functions or merely late to make a payment. In such scenario, adjusting your payment terms or re-negotiating the deal and getting it down from 30 days to 15 days might help you to receive payment on-time. This will increase the chances of them adhering to your payment terms and to pay on-time, which is in a way very crucial for your business to run smoothly.
Levy Late Payment Charges:
It depends from company to company, whether to bill customer/vendor late payment charges depending on the customer’s past payment records or how strong is the business relation. Of course, you can waive-off the charges if it is a one-time or very rare thing, but, if it’s an on-going or a regular thing for a particular customer, then its best for your business to put the strong foot forward and explain the payment terms for the same. Do it in a way that the customer does not feel offended as well as he still remains your customer and access services, as usual, just being more aware of the payment and not let it past-due.
Offer Various Payment Options:
Offering and accepting a range of payments gives clients more options and also benefits your business as it leaves lesser chances for them to avoid making payment on time. For e.g, Moon Invoice, an invoicing app offers the simplest solution in such scenario by providing multiple payment options to its customers. You also get the benefit of PayPal button support. Payments to business take only days to settle, making the process simple and more efficient.
Offering to pay via credit cards also gives customers sufficient time to make a full payment on their own terms. This option works best for the customers who cannot pay the balance off as quickly as your business need.
Track Invoices & Follow-Ups:
It is always beneficial for your business to opt for a service which lets you know when a customer has viewed your invoices. A quick glance to inform you that your invoice has been delivered and viewed relieves you from the thought of whether has it going to spam folder or still showing unread status.
Payment reminder feature helps you to keep a track of customers who and when they need to be reminded about the payment. This way identifying the slow-paying clients and taking necessary action upon it will ultimately result in improving your cash flow.
Here’s the list of few handy payment invoicing features offered by Moon Invoice:
1) Multiple Payment Methods
Add preferred payment processing channel for faster payments which improve your business cash flow. Also, get the benefit of PayPal button support.
2) Recurring Invoicing
Leave no room for error! With recurring invoices quickly generate daily, monthly or yearly invoices and also get a reminder about overdue invoices.
3) On-time Payments, Every Time
Always know beforehand about invoices & expenses becomes overdue. Easily automate payment reminder and get paid on time.
4) Bill In Any Currency
Speak your clients’ financial language with multiple currency options available. No obstacle in doing business by selling products or services overseas.
We welcome you to check Moon Invoice app, unique and first in its class to provide iCloud Sync for every kind of businesses and individual. With Moon Invoice you can ‘Try Before You Buy’ option to feel the one-stop solution for all your invoicing needs right into your hands.