8 Cool Tips to Get your Money Faster
One thing that is primarily responsible for running a business is ‘Cash Flow’. A business is able to carry out its operations effectively, only if money flows-in on time. The consistency of cash flow depicts a business’s image in the market. Cash flow motion is crucial for small businesses or freelancers that often depend on their client(s) for income.
Asking for a payment is obviously no crime. You might have tried offering benefits and quality assurance to your clients against a timely payment, but if that didn’t work out, you seriously need to put stress.
Surprisingly, you have offered your services in its full entirety and on time, but there’s no sign of money coming-in. Technically, you deserve a fortune, which is being delayed by the client itself. Perhaps, there is something wrong in your approach.
Now, here’s what you should do to see cash coming-in without delay
Send Electronic Invoices
Managing invoices manually is a headache. It’s irksome to scan and keep those huge piles of invoices under your desk. A better way to manage your invoices is to use an online invoicing software. This way you can create and send online invoices to your clients and get paid on time. Not only this, you can schedule your invoices, send recurring invoices, send reminders to ensure a timely payment.
Quote an Amount Upfront
When you know that a particular deal would demand huge expenditure, collect token money from the client right away, so that you have something in your hand before the project initiates. Afterwards, provide an invoice and insist a payment on receipt. This could be done with mutual understanding between the company and the client prior to the start.
Divide your Invoices
Send invoices in parts, but do it often to ensure timely payment from the customer. Doing this would prevent you from hounding your customers with big amounts, and would further ease-up their financial burden.
Talk it Out With your Customers
You might think of it as something you often do and did in the past. But, most of the times, the conversation might not have been effective. Have a word with your clients regarding their account payment process at the start of the business deal. This would help you know them better and be well aware of the day you can expect cash coming your way.
Apply Monthly Retainer Period
Consider working with your customers on a monthly or quarterly retainer basis. Be clear while discussing your terms and conditions with the clients and mention the retainer period. This would bound your clients to be with you for a certain duration and would definitely minimize late payment issues. And you could again quote an amount upfront. Again this would help you keep your accounts and cash flow in good state.
Charge Late Fee/ Interest Charges
Penalizing your client is legit, if you previously stated ‘late fee’ or ‘interest charges’ in your terms. Charge the required penalty, if a payment is overdue. The client would be alert the next time to pay you on time in order to avoid any penalty.
Accept Credit Cards
Allow your customers to pay you via credit cards. This would facilitate a smooth payment process. Although, this might demand an origination fee, but nevertheless it will help you get your money sooner than ever.
Pamper your Clients
Lure your customer, giving away discounts or incentives on timely payments. Doing this could move your clients into making payments on or before time. Why? Because this gives them some leverage on the total payment amount. Sometimes, they even offer cheques overnight to avail the ongoing offer. You may have a go on this to see how soon your money comes in…
This post has been contributed by Invoicera, which is an onlineinvoicing and billing software that makes way for seamless invoicing, eliminating the use of paper bills. Ideal for small business owners and freelancers, Invoicera features time management software and expense tracking app within.