Your business can only be profitable if you get paid — and, preferably, paid on time. Here are some tips for making sure you collect payment due in a timely manner, presented below by Nicasio Design.
Require Money Upfront
Although this may feel like you’re signaling to customers that you don’t trust them to pay you, Business.com points out that requiring some form of payment before services are rendered is a common tactic. For example, many summer camps require a deposit to secure the child’s spot. This ensures both parties have a stake in fulfilling their ends of the deal. As the business, you’re more likely to make sure you uphold the agreement you made to the customer. In turn, the customer is hopefully more invested in continuing and completing the transaction.
If you’re worried about diminishing customer loyalty by requiring money upfront, make it a policy for all customers. This way, customers don’t feel they are being unfairly singled out to pay money upfront.
Incentivize Early Payment
Customers love to be rewarded for their loyalty. One way you can do this is to offer an incentive for paying their bills early. For example, if the payment is due in full on the last day of the month, try offering a discount in exchange for receiving the full payment by the 15th of the month. By doing this, customers feel incentivized to pay off their balance early, and the discount helps them feel their business is appreciated. Plus, it means you get paid faster and have one less thing to worry about.
Communication Is Key
Sometimes customers don’t pay on time because they genuinely weren’t aware of the due date. To prevent these situations, communicate with customers often and early about their balances. With open communication, customers may feel more comfortable telling you if they need more time to pay. Electronic documents are excellent for communicating information about payments because customers can send and receive them on the go, and they’re easier to manage than physical documents.
When sending a PDF file, be mindful of its size. Larger files can be trickier to send, and you don’t want to risk the integrity of the file contents. Use a high-quality PDF compressor to reduce the file size without corrupting it.
Create a Contract
Rocket Lawyer explains that a basic contract outlining the payment details ensures all parties agree to the terms. It can also protect you in the event of a legal dispute. Contracts normally include information, such as the date, parties involved, terms of payment, and contract termination agreements.
Fintech, short for financial technology, offers many options for digitizing the invoicing and payment process. One example is financial API bank account balance apps that connect customers’ financial data to companies’ payment processing systems. This tool, which integrates with financial software, tracks and retrieves all customer banking information and is connected using a secure API optimized for customer privacy.
Secure Payment, Secure Customers
Most customers want to pay you on time. Put in place reasonable consequences for late payments, but also incentive early and punctual payments to gain customer loyalty and respect. And don’t forget the myriad of technology at your disposal to make the payment process as smooth as possible.
Nicasio Design can develop the perfect solution for your business, generating more revenue through the internet. It’s easy, fast and cheap! Connect with us today for more info! (912) 441-7011