Why are Your Clients Paying Late? - Understand on how to get paid and how to deal with late payments on invoices without feeling rude or awkward

Why Are Your Clients Paying Late - Understanding How To Get Paid

Do you accept electronic payments?

Let’s face it: no one uses checks anymore. There are many ways to easily accept electronic payments, generally for very small fees, which will make it easier for your clients to pay you.

Are your invoice terms too long?

Are your invoices due upon receipt, net-15, net-30, or net-90? The terms you choose communicate different priorities to your customers.

Are your clients having their own cash flow issues?
Do you consistently notice that the same customer is always paying at the very end of the invoice term, or that the same client constantly has a number of overdue invoices? It could be that their accounting is sub par, but it could also be that they’re having their own cash flow issues.

If this is the problem, you really only have two solutions. You can offer incentives and discounts for them making you one of the first clients that they pay, or you can choose not to accept their business moving forward. It’s hard to let go of clients who are constantly late paying, but do eventually pay, but at the same time, if you can replace them with clients who do pay on time, your business will function more smoothly going forward.

Are you caught in a billing cycle?

Some large businesses have specific times when they pay out all of their outstanding invoices. If this is the case for your client, ask your contact for information on when is the best time to submit your invoice to ensure quick payment.

source from: https://lessaccounting.com/blog/why-customers-arent-paying/



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