No one likes to wait on receiving a payment. It’s a major pain point for many companies, large and small. Learn how to get paid on time and stop wasting your valuable resources on pesky reminder calls and emails with these six steps to stop late payments.
1. Track Every Late Payment
Identification means everything. From the first time you encounter an overdue account, track it. Accurate tracking methods will help you pinpoint offenders and avoid poor cash flow management. Direct debit billing solutions can be a tremendous help in the process.
2. Simplify Payment Terms
Lengthy and confusing payment terms can lead to late payments. Simplify your terms. Be upfront with your customers about how and when you want to be paid to avoid confusion and delay.
3. Don’t Be Afraid to Ask
Late payments are a touchy subject for any company. But don’t let a lack of communication add to the flame. Your customer may have a legitimate reason for not making the payment, like thinking the transaction had been successful when it wasn’t fully completed. Well-placed, professional communication can go a long way to resolution.
4. Plan for Late Payments
As counterintuitive as it might sound, the reality is that late payments do happen. Plan ahead by allocating a “late payment” budget each month to create a cushion for the ones that do occur. This eases the pain and promotes healthy cash flow management.
5. Take Technology to the Next Level
Tracking cash flow is much easier today than ever before. Integrate innovative technological solutions like IntegraPay’s payment solutions into your organization’s existing software to encourage effective and successful cash flow while managing customer accounts professionally.
6. Make it Extremely Easy for Customers to Pay
The harder your payment process is, the less likely your customers are to pay on time. Your customers need an easy way to access invoices, analyze them and pay. You can facilitate this process by providing innovative payment solutions like:
- Online Payment Management Consoles for easy access
- Direct Posts so your customers don’t have to change sites for payment
- Recurring Payments to automate the process
- Transparent Invoice Details to avoid payment disputes