Whether you’re a self-employed individual, freelancer or run your own business, getting paid the right amount and on time is essential. When issues with overpayments arise, it’s a quick downward spiral into debt, low productivity, resources and a dreaded fiscal slump.
When it comes to handling invoices and processing payments, many of your clients might be very efficient and eager to pay for your services. Unfortunately, not every business is as thorough or as courteous. Of course, many issues around late payments are often the result of a clerical error or oversight and can be quickly rectified. In other instances, receiving payment can feel like you’re trying to get blood out of a stone.
Understanding why clients fail to pay their invoices on time can help you stay one step ahead and put processes in place to protect your income and the relationships with your clientele. Want to know more? Read on for the frustrating reasons why clients fail to pay on time.
Reason 1: They Claim They Haven’t Received Your Invoice
This could be a genuine oversight on your part, or they could be playing for time. Either way, there are multiple ways you can prevent this from being used as an excuse and from occurring altogether. The most simple and effective approach? Investing in accounting software from FreshBooks.com means you can create fully customisable and professional-looking invoices in seconds, and schedule them to be sent out automatically, therefore eradicating any questions about whether or not the invoice was received. Additionally, you could also send a paper version.
Reason 2: They’re Not Happy with Your Service/Products
Are your clients putting off payment because they’re unhappy with your services? Have there been complications or problems that haven’t been addressed? Ensuring that your business is efficient and dedicated to high standards can prevent this issue from arising. Additionally, investing in a thorough customer service approach ensures any issues are addressed promptly and resolved before payment is requested.
Reason 3: Your Payment Terms Aren’t Clear
When you send out your invoices, are your payment terms clear? If your customers don’t know when to pay you, then it’s more likely that they’ll place your invoice at the bottom of the pile. By stating your payment terms clearly and avoiding complicated financial jargon, you can clear up any confusion and ensure you get paid on time, every time.
Reason 4: They’re Unable to Pay
Sadly, businesses with cash flow issues may try to deflect from paying until they’re in a position to do so. Although this is unfortunate, this doesn’t help you. Communicating clearly in your payment terms that you’re willing to discuss payment plans or willing to discuss other options if a business is struggling financially can help you get paid, and even increase customer loyalty to your brand.
Reason 5: Paying You Is Hard Work
What kind of payments do you accept? If you’re only offering one form of payment, you might inadvertently make it difficult for your clients to pay you on time. Accepting multiple payments including credit cards, bank transfers and others can make payments to your business complete with just a couple of clicks.
Final Thoughts
Are these the reasons why you’re struggling to get paid on time? Refresh your payment processes now to keep your business financially healthy.
