For your business to survive, you need to have cash flow. This means that it is essential that you get paid by your clients for the work that you do. There are strategies you can use to give you the best chance of making sure you get paid.
Written contract setting out terms
Having a written contract that sets out your terms will ensure your client has an obligation to pay. Your contract should set out the specific work
that you provide, the costs of the work, the payment methods that you accept, the amount of money you require upfront and the procedure you will take if your client does not pay.
Your invoices should be sent out promptly to make sure you get paid quickly which will help your businesses cash flow.
You can set up automatic invoices to be sent out at the same time each week or month, you will need your customer’s billing information, the amount of each billing transaction and the method of payment.
Relationship with clients
You should have a respectable relationship with your client, this can encourage your client to be paying their bills on time. Using phrases such as “please” and “thank you” when sending your invoice can also increase your chances of getting paid on time.
Keep track of clients payment history
You should consider having a database that can keep track of your client’s payment history. If you have a client that continuously does not pay on time, you can make sure you send them reminders more frequently and ensure you send them their invoice as quickly as possible.
You should follow up on misses payments as soon as possible to increase the likelihood of getting paid. You can do this by sending a letter to your client that states that their bill is overdue.
If your client isn’t paying
If you have tried everything and your client still has overdue accounts, you could consider using a collection agency to recover the debt.