“In addition to accepting multiple payment options to make it easier for customers to pay us and having a clear due date of seven days instead of Net30, we have a 10 per cent prepayment discount so that is a motivation for our clients to pay us not just on time but ahead of the due date. With long term clients, timely payments are rarely an issue.” - Sue McMaster, principal consultant at Quest Communications We also make a gentle reminder when invoices are 30 days past due. “We lay out payment terms in the contract, which includes a 50 per cent project deposit before any work product is shared.
A team that understands cash flow will help you get paid fast, educate them about the cash cycle and they can be your greatest proponent to getting paid in a timely manner.” - Angelika Gocalves DaSilva, business advisor at Stawowski McGill Finally, great employees, without a team that is aligned with the processes and customer relationships of your business, you will get paid last. Building a relationship with your customers will help ensure that they make you a priority on the next cheque run. Relationships, know how your customers operate: Do they use an online portal or do you send your invoice in the mail? There can be a significant timing differences in your cash cycle based on how a customers receives their invoices. You need processes in order to make sure that your business can get work done, invoices completed and information delivered in a timely manner to your customers. “Processes, relationships and great employees are key to getting paid in a timely manner. Depending what you are selling get paid up front, if you can’t then get a commitment documented, then send reminders before the payment is due.” - Charity Callahan, partner at C4Skunkworks If customers are not paying it could be a sign that your pricing and/or business model may need some fine-tuning. Advice: If this is happening it may be that you will need to provide more clearer terms and ensure that what you are getting paid for is worth it. Unless you are a big name brand or incredibly loyal repeat customers, just because you think you should be paid for something doesn’t mean your customers believe you should or thought that level of commitment was required with little trust built in between the transaction and the invoice. Many invoices and/or payments are held up because companies haven’t explained what they did to require that payment or what value was provided. “Make sure that the customers know what the cost is and the value that price is providing before receiving an invoice. This advertisement has not loaded yet, but your article continues below.
They will not want to put up with you repeatedly calling or visiting them, and if they are the type not to pay, you have no reason to attempt to maintain the relationship anyway.” - Merri Lemmex, Managing Partner, Operations, Lemmex Williams Training Inc. And lastly, the squeaky wheel gets the grease, so if you suspect a client is not going to pay, keep at them until they do. As soon as they are due, a reminder should be sent to show that you are not willing to let this debt slide. Another way is to stay on top of your receivables. A well respected business partner that a company wants to stay connected to is less likely to have their payment delayed than one a business is not intending to deal with again. “One of the best ways to ensure you get paid on a timely manner is providing good service. Article content Communication with customers is the key to getting paid promptly, says Don OâDwyer, CEO of Raven Bay Photo by Dion Dicks / Direqtion.ca Our approach to getting paid in a timely manner is to have ongoing discussions/updates and create a relationship with our clients.