Member Article

Five Tips for Getting Paid On Time

Here at Commercial Domestic Investigations, we understand that late payments are a significant issue for small businesses across the UK. If clients fail to meet invoices within the specified time frame, you cannot develop the healthy cash flow required to support operations and grow. It is critical that you make sure clients pay you on time, so you may want to use the following tips to achieve this goal.

Adopt the right attitude

Many small company owners fear that if they push clients to pay, they may lose business. For instance, 57% of freelancers recently questioned by Ormsby Street said that if they chase payments, clients may not utilise their services again. Remember that you are entitled to be paid. By adopting a pro-active attitude, you will have the confidence needed to ensure clients take your invoices seriously.

Send watertight invoices

Do not give your clients an excuse to delay payment. Follow government guidelines when writing invoices to ensure that you adhere to your company’s legal obligations and send watertight invoices to clients. Take the client’s circumstances into account e.g. include flexible repayment terms if necessary, so you can collect payment without damaging your potential to do more business with them in future.

Communicate regularly

It is vital that you send notices of late payment straight away. However, you may also want to communicate with the client before a payment is due, so you can remind them of their obligations to your company. Sometimes it is advisable to call rather than email, as this will allow you to communicate directly with the client, so you can make their obligations to your firm crystal clear.

Facilitate electronic payment

If you want to ensure clients pay your business on time, you must make it as easy as possible for them to do so. We would advise you to facilitate electronic payment, via direct debit or electronic transfer, so your clients can place the necessary funds in your account conveniently. In this increasingly-digitised world, it is key that you present yourself as a company that trades online, so this could also help you develop a reputation as a forward-thinking firm.

Perform credit checks

Do not enter into a business arrangement with a client without researching them first. It is key that you perform credit checks on potential clients, so you can determine how likely they are to pay invoices on time. Here at Commercial Domestic Investigations, we offer a comprehensive credit check service, giving you the peace of minded needed to strike up new business relationships.

This was posted in Bdaily's Members' News section by Steve Hall .