A late-paying client can hinder you from paying your bills and addressing your family’s needs and wants. However, with the right software and techniques, you may be able to retrieve payment and prevent late and nonpayments in the future. Need some tips to get you started? CTAMarketing presents some resources below to help you out.
Write a Concise Contract
Create a contract that clearly states your expectations of clients. Include the payment terms and current date, payment due dates, and expiration date. Specify the parties involved, and inform the client of any specifications for contract termination. Make sure your current and future clients sign an agreement before you complete more work.
Use Invoice Software
While you can find apps that allow you to create and send invoices, such as FreshBooks or Invoicely, you can take it one step further by using a software program that helps reduce the prevalence of non paying clients. If you use a financial API bank account balance program such as Plaid Balance, you can tell if the client has the funds to pay you for your time or product. If the client doesn’t have the funds at the time, you don’t have to proceed. This particular service is also beneficial to customers since they know for sure if they have the money and don’t risk a potential overdraft charge.
Utilize Effective Communication Techniques
Set firm guidelines with your clients, and avoid hinting or suggesting. When clients are fully aware of when payment is due and how to pay, they’re more likely to follow through.
Another way to communicate more effectively is to use a PDF conversion program any time you send a larger-than-average file. These files are difficult to send through email. When you condense them using a highly rated PDF converter, your client receives the file with its original formatting, color, and font.
Offer Multiple Payment Options
Your client may be one of the 392 million PayPal users, and they may not have a Venmo account. On the other hand, your client may not be computer savvy and may have no idea how to use these online platforms. If this is the case, the client may be more comfortable using a check to make payment. With multiple payment methods available, clients are more likely to pay.
Remind Clients of Payment
Don’t automatically assume clients are avoiding payment because they don’t want to or can’t pay. If you only sent an invoice via email, it’s possible they may never have received it. It may have gone to their spam folder or gotten mixed in with the numerous other messages. Try sending it again. If you’re getting nowhere by emailing, call instead. Speak to someone directly, and ask exactly where they’d like the invoice sent.
Avoid Non Paying and Late-Paying Clients Through Research
Spend a few moments researching all new clients through a simple internet search for their name or company. While this does nothing for your current situation, it can help you find clients who pay on time and allow you to pass on those who don’t.
Take Proactive Steps to Receive Payment and Prevent Late Payments
When you’re proactive, you can encourage a late-paying client to pay soon, and you can take steps to prevent late payments in the future. It helps to use online programs and be direct with your clients.
By Sarah from Economymom.com