Do you know the most common complaint of small business owners and freelancers? Yes, it is not getting paid on time. Not only does it upset the cash flow, but it also has a detrimental impact on business activities.
Well, one way to streamline the whole invoicing process and get paid on time is to invest in good online invoicing software. This way, you will be able to collect payments on time via software and take better care of customers.
Here are some hacks you must use to collect payments on time and see your business grow leaps and bounds.
1. Establishing A Payment Policy
Well, one way to never run out of cash is to negotiate a payment policy with your client. Well, it can be tricky for small business owners. But, it will be beneficial for you and your client.
Not only will you be eased out and worry-free about payments, but your clients will also be able to allocate their budgets better. One fine way to achieve this is to create a contract with your online invoicing software and include your payment policy in that. A written agreement is a must, and you will be able to set your expectations clearly. You can also create customized invoices to make your customers feel special.
2. Consider a Retainer-Based Model
If you are still stuck on per-hour charges, you must consider shifting to a retainer-based business model. The latter will be more helpful if you have a good workflow.
This model will help your client achieve their goals faster with your services. But why is it so? It is because it will help you predict your income over time.
Besides, your clients will have no surprises when it comes to settling payments, and they will be able to plan their finances better. You can then make changes accordingly and customize your online payment processing software.
3. Design A Personalized Payment Schedule
Transparency is paramount when it comes to handling clients. You can set up a schedule with your online invoicing software and offer a plan to your customers. But, make sure you keep your client’s needs at the forefront. Having clear-cut conversations will help you avoid instances of delayed payments and piling invoices.
While some clients would prefer making payments in installments, some will want to make full payments. If you can work out a plan that works best for both parties, it will lead to a long-term relation and positive cash flow for your business.
4. Automate Your Billing System
A big mistake small businesses and freelancers make is sending invoices late. This delays the process further if revisions are needed. Moreover, incomplete details can also be a huge issue.
But, when you automate your invoicing system with online invoicing software, you will be able to minimize errors and get payments on time. Also, with reduced invoice blunders, you will be able to take better care of transaction data.
5. Build Sound Relationship With Clients
Good relationships with clients are the foundation of running your business. This will open up a plethora of opportunities and increase your probability of getting repeat orders. Moreover, your clients will pay you faster too. So make it a point to have clear communication and study methods on how you can improve on future interactions. Besides, when you have a good bond with your client, you will be able to achieve goals better.
6. Strategize Payment Collections
Now that you know the process to automate invoicing with online payment processing software, you must make it a point to streamline your strategies and collect payments in a better manner.
These include the number of days you will wait till you send out email reminders to clients and what you will do if a client refuses to pay you. Once you have answered all these questions, you can devise a strategy.
7. Consider Giving Early Payment Discounts
If you are convinced about offering a personalized payment schedule to your clients, offering them a small discount is also an idea you can implement. It will act as an incentive for them to pay you faster, and you will never need to deal with late payments.
Overdue invoices are a great hassle for freelancers or any business. Thus, having contracts in place will help you manage your finances better. But, if you’re still looking for the perfect online payment processing software, allow us to help you find one!