When you are a business owner, you are bound to get stuck with clients who do not pay on time. The worst part is that confronting them about their late payments can be challenging and awkward. Of course, you would want to ensure that you receive your payments on time without ruining the professional-client relationship, which can be tricky.
If you were to add late charges, you might receive conflict from the other side. Unfortunately, not all clients are reasonable and understanding. To avoid conflict, you must follow certain tips to get timely payments. For additional help with your business finances, consider speaking to an accountant from Scott Counsel.
Tips to get your clients to pay on time
- Create a payment calendar.
Some clients owe you small payments while others owe large ones. For the large ones, do not send the client one big payment at the end of the service. Instead, send them multiple small invoices every time you reach a milestone.
You can create a payment calendar that both sides agree upon so that there are no issues along the way. Making a policy that you won’t continue ahead if you do not receive payment for a prior one is a good strategy.
- Maintain good client relationships.
If you want your client to pay you on time, you want to keep them happy. No matter how annoying you might find them, remember to treat them with respect and kindness every time they visit your office or you visit.
Do not keep the relationship entirely professional and mix up a bit of friendliness. Show them that you care and will go out of your way to help them. A client who sees you more like a friend is likely to pay on time.
- Get written contracts.
One good way of getting paid on time is having deadlines and fees documented and signed by both parties. Create a contract outlining the payment terms. Make sure to ask for the client’s preferences so that the odds of getting paid on time increase even more. Developing a plan that your client is comfortable with will also show that you are sympathetic to their situation.
- Show gratitude.
You are a person, not a bill. Do not immediately send them an invoice after providing your service or selling a product. You want to show them gratitude for choosing and trusting your company. Send them a thank you note with gifts like flowers or chocolates. This will definitely put a smile on their face and also lead them to make payments quickly.