‘Cash Flow’ still remains as one of the important factors for a business to run successfully. As there are daily expenditures involved, a little or maybe more as per business need, it is very necessary to also focus on the cash coming in. To make sure that you are receiving your payment on time, there are many invoicing platforms or also called as online invoice generator or online invoice maker.
More often than not, small businesses do not receive payments on time because their clients or customers forget and rest of the time they do not take payment terms seriously as the points are not clearly mentioned and/or explained. The ‘Invoice Payment Terms’ should give your clients an impression that they are responsible to make a payment towards goods or services they used or else they will incur late fees and other charges.
Here we have listed a few tips for business owners to know about a certain way to make perfect invoice payment term.
Use Familiar Terms
Even though few terminologies would be common or uniform in businesses, try to avoid as not everyone might be knowing what it means for e.g, most of the companies uses ‘Net30’ or ‘Net60’ which means that the payment is due in 30 or 60 days respectively from the billing date.
But another way to go is also by using ‘Days’, which is simple to understand. Moreover, what you avoid here is a chance of misunderstanding which will result in for you to receive payment on time.
Asking for payment could sometime come off in unintentional harsh or demanding voice. The key here is to keep the tone of invoicing as polite yet firm. Invoicing presents you with the opportunity to leave a good and lasting relationship with your client so as to do more business. This is why you need to convey polite yet firm invoice payment terms so that they are aware to make the payment within the time frame mentioned. You can use general phrases such as ‘You are requested to make this payment by’ or ‘thank you for a wonderful cooperation’, etc and mix it up with even a custom message.
Format & Itemize
The format should be clear and concise while a detailed itemized invoice would add a cherry on top of the cake. Listing all the products and services with a description of price per unit, total price, tax, etc is necessary. As long as it is fairly indicative and yet simple to understand you are good to go ahead and can expect it to be getting paid on time.
Check For Grammar & Spellings
Spelling mistakes give out the impression of being unprofessional. Additionally, incorrect grammar could also lead you to financial trouble. Hence, it is always recommended that you proof-read the invoice content before sending it. Most people are not very good self-editors for which they can rely on online tools for correct grammar and spellings.
Late Payment Fees & Early Discounts
None of us likes to play extra and especially if we have genuinely forgotten to pay on-time. This is actually very crucial wherein a business could possibly lose a customer. Hence, one has to tread very lightly when a situation likes this arise. Late payment serves the purpose of reminding your clients that they have already missed the payment date and take a note of it.
To maintain a good relation, you can also waive off the late payment charges if it’s for the first time and you feel genuine but also have to ensure that it does not get repeated again. Moreover, you can also entice your customers to pay early for products and services to offer early paid discounts as well. This will build trust and show that your company believes in good intention and rewarding it. Both of these approaches will lead to better communication and your payments mostly will get paid on-time.
Offer Multiple Payment Option
We are living in the era of digital payments and other related options, so your clients or customers should not be limited to only cheque or cash payment option. So many businesses have started to opt for online payment and other options which are safer and faster also. Professional online invoice maker provides multiple payment methods.
Moon Invoice is simple in User Interface, sober in features and sophisticated for all Small & Medium Enterprise and Businesses. Designed with the highly integrated intelligent system, get all the invoicing solutions with an app to have a hassle-free business operation.