Are you a business owner that is having trouble getting your clients to pay outstanding invoices? There are several steps you can take in order to receive payment for outstanding invoices. Your entire payment collection process can be streamlined using the latest invoice software. At Invoice2go, a Bill.com company, we offer digital solutions that allow you to create customized invoices and send them to your clients right from your smartphone. These invoice templates can be adapted to include your unique company logo and give your business a more professional look. Late fees on overdue invoices might vary from state to state, though most freelancers and small businesses charge a 1.5% monthly interest.
You may then go to the Moon Invoice website to handle all of your outstanding bills after making your invoice there. Your business might be getting a lot of new customers and having great success with your sales. However, when the payment date passes with no response from your clients, you realize that these statements are not true. As a result, your cash flow deteriorates and your firm is unable to pay employees its operational costs. When you’re dealing with a late payment, your first port of call should be direct communication with the client. There may be a number of different reasons why they are unable to make the payment on time, and usually it’s fairly simple to reach an agreement about how you can handle this.
Make Your Payment Terms Clear
Consider using payment reminder email templates, such as the following. Check a consumer’s credit record before granting credit to them to learn more about their financial situation. If you have any doubts regarding the dependability of your commodities, hold off on exporting them until payment is received. You may reduce the chance of nonpayment by reviewing your payment terms. This will offer you a good idea of which clients consistently miss your payment dates, allowing you to decide if you want to continue doing business with them. Explain your late payment penalties and how they will apply right away.
However, you need to have a clearly stated late fee policy in your payment terms at the start of the sale. Have your customers sign an agreement before supplying them anything, ensuring they’re clear with the payment terms up-front. Accounting software that is up to date to track outstanding and overdue invoices and send out payment reminders automatically. When you’re running a business, few things are as stressful as chasing payment for unpaid invoices.
If you still aren’t getting anywhere fast, you still have options
There’s no point sending a reminder email to pay an outstanding balance if you don’t tell them how to pay it. Close your email with a call to action that explains the various and easy ways the client can settle the account. Instead of sending individual reminders for every invoice, you should only send one reminder which totals all money owed. That way your clients aren’t bombarded with multiple messages about payment due dates. Indeed, you shouldn’t send the same payment requests to “bad payers” compared to your major accounts. In the former case, you should send a reminder before the invoice is late.
Research carried out by Ignition found that in the United Kingdom, 90 percent of What Is An Outstanding Invoice?ants and bookkeepers experience the awkward client situation of chasing for late payments. If your customer is a sole proprietor, then you’ll be dealing with them directly. But in larger organizations, your client may have a staff member in charge of billing and payments. You’ll want to send your invoice to the company’s accounting department to ensure that the right person receives your invoice. But your invoices are 60% less likely to be paid once they pass that 90-day threshold.