If you haven’t come across this yet, prepare yourself as it’s bound to happen. You have a customer or client who just won’t pay your invoice on time.
Late payments put a strain on your business, yourself and the relationship between you and your clients. You spend quite a bit of time and effort to do the work the client needs; you expect in return that you’ll get compensated in a timely manner. Late payments are one way to burn bridges between people.
It doesn’t matter what type of work you do. You deserve to get paid and get paid on time. Although there are some circumstances beyond people’s control in which payment may get delayed (in which case, this should get communicated between all parties), for the most part though, you should get paid on time.
If you’re struggling with a late-paying client, Corporate Business Solutions Reviews has a few ways to help you get paid.
Send Out Reminders
In some cases, all that’s happened is your client forgot to send out the payment. A simple reminder may do the trick. There are a few ways to do this. You can either send a quick email or text reminding them about the invoice or resend the invoice altogether.
To prevent late payments, send out a few reminders before the due date. Send out the first reminder a week before the payment due date, the day before, on the due date, and a week after the due date.
Make a Phone Call
Sometimes, emails and text messages can get lost and forgotten about. A phone call is a form of communication that is hard to ignore. Also, a phone call seems to stress the point that much more.
If you decide to make a phone call to the client, use your best customer service skills you have. You don’t want to burn any bridges with your clients. Approach the situation in a calm manner and let them know this is a simple reminder.
Implement a Late Payment Fee
Whether or not you struggle with late payments, implementing a late payment fee is a good business practice. It helps ensure that you receive payment on time and if you don’t, you’re compensated for the days you’ve waited for payment.
If you go this route, make sure it’s well-known to every client that you have a late payment fee. You wouldn’t want to catch them off guard with additional charges and hurt your relationship with the client.
Do you have a client who is late with payments every time, no matter how many reminders and phone calls you send them? It may be time to cut ties with this client. Typically, a business goes this route as a last option, unless there are other factors included.
When refusing to work with a client, you still want to do so politely and professionally. You never know if the client will say something to another person about the experience. Be confident and straightforward with your decision, and explain why you’re not going to work with them anymore.
It’s important to keep track of all invoices, when they’re paid, and how many reminders you’ve sent. That way, if you need to contact them or decide to stop working with them, you have the proof to back your claims.