So you've done the work, now you are waiting for the money. Some clients will make you wait longer than others. Some clients may not pay you at all. But have no fear my small business dear. Here are some tips to getting money in your bank, rather than as a bad debt:
The faster you send an invoice for your services, the faster you will get paid. Anytime that I work with companies, getting out invoices is the priority. Setting aside time to invoice on a weekly basis, will ensure cash flowing 30 days later (if 30 days are your terms) on a weekly basis.
Review Receivables on a Consistent Basis
Every time I enter a payment received from a customer, I look at any invoices that are still outstanding. Ensuring the payments that you receive are as up to date as the invoices you are sending out, gives you the knowledge to which customers need to be contacted today, and not tomorrow. You will lose precious time if you are not keeping track of the money that is coming in. Once you know an account is delinquent, you can contact the customer to find out when your payment will be coming.
Contact, Contact, and Contact Again
In real estate, it is location, location, location. In collections, it is contact, contact, and contact again. You can start with a friendly reminder of an invoice that is coming due. Once a customer is past their terms, send an email stating the invoices are overdue, and when will they be sending payment. Keep contacting if there is no response. Usually, your customer will come through and send the money you are due.
Send Any Information when Requested
Having your invoices and any backup in digital format, makes providing information very quickly a whole lot easier. There are times when email does mysterious things and your customer may not have received your original invoice. That's fine, send it again.
There are also times when a particular customer does this every time you are looking for payment. Then you have a good idea it is a stall tactic. We will call them the "Staller". The Staller will also make the statement that they just put the payment in the mail. Or it must have been lost in the mail. Or the payment will be sent out at the end of the week. Regardless, you need payment and once you receive the payment, you need to make a decision of whether it is worth keeping the Staller. Because your time is worth money, and if you are spending it on getting money from a Staller, is it worth the business in the first place? Usually not.
Work smarter, not harder for your money. Keeping on top of the money coming in is one way to ensure the success of your business.
Entrepreneur, bike spinner, and resident of beautiful Steveston, BC.