Do you have clients who don’t pay on time even after sending them the invoice more than twice? Not to worry, you are not alone in this rough path. Late payments can be one of the most frustrating parts of owning a business, and can also cripple the bottom line. As the lifeblood of any business, a healthy cash flow gives business owners the means to pay employees and procure the goods they sell. For many small business owners, unreliable cash flow is a factor responsible for what encumbers them from reaching their full growth potential. But here are simple hacks to help you fast track payments from clients and establish steady, predictable cash flow:
Embrace Cloud Storage
This may sound cliché, but the cloud has changed the way the world does business. Cloud Storage provides a private unit that automatically backs up and centralizes all your content in a safe place. With internet access, you can quickly access your cloud unit and share whatever you want, from wherever you are. Leveraging the cloud can improve nearly every aspect of running a business. Should you receive a question about an invoice and need to put last-minute touches on it, you can confirm information and send it right away.
Invoice Customers Accurately
Sometimes, business owners contribute to the delay in payment by sending incorrect invoices to the customers and this can give a wrong impression about you. Setting alerts can help you streamline the process for submitting invoices accurately and on time each month. You can even set up automatic, recurring invoices.
Keep Detailed Records
It is important to track your paper work and this can be done by storing all your documents, invoices and bills in one place using cloud storage. This also adds security for the business and its customers. Plus you never know when you will need to refer back to your records to show a customer that he or she hasn’t paid yet.
Offer Incentives for Early Payments
Everybody loves freebies, including your clients. You can use incentives to establish desired customer habits such as paying invoices early. Offering incentives or discounts can give customers a reason to make early payments. Sometimes, a little push is enough to get someone over the hump and pay early, the Holy Grail of cash flow.
Keep Communication Lines Open
Sometimes, most people tend to forget they have not paid yet. Sending a simple email reminder to customers can go a long way. A simple gesture can be the gentle nudge people need to get a payment on its way. You can also automate these reminders using cloud solutions. Part of the value of an email reminder is that it reinforces your relationship with the customer and provides an opportunity to engage. Use the email reminder to create an open dialogue with clients, providing them with a sense of security and comfort. But more importantly, a resourceful customer service personnel provides customers with an incentive to stay with the company amid tough times.