As a new start-up, it’s especially important to get paid by the due date: You want to ensure a positive cash flow so that you can invest in new projects, employees and equipment and increase your bottom line. Let’s take a look at how invoice technology can increase your chances of getting paid early.
In the US, 55% of invoices are paid late. However, there are some important steps you can take to increase the chance of getting paid early. Leveraging invoice technology has the potential to save you time and money, as well as significantly boosting your bottom line.
1. Send out invoices on time
The most important way to get paid early is to ensure that you send out invoices promptly. You should send out the invoice as soon as you’ve delivered a product or service.
There are many invoicing methods, but serious start-ups should invest in invoice software rather than using templates or generators. Invoice software helps you make consistent and professional invoices that strengthen your brand and avoid confusion and disputes. Invoice software also stores all your products, services, clients and business details, which significantly speeds up the invoicing process.
Invoice software can be costly, but there are great alternatives with an affordable price tag, and some that are even free, like Conta.
2. Provide different payment options
Another important step to getting paid early is to provide your clients with different payment options. Letting your clients choose the payment method that suits them best will encourage them to pay faster.
Different payment options include:
- Cash
- Bank transfer
- Links to a payment gateway such as PayPal or Stripe
- QR-code to a payment gateway such as PayPal or Stripe
- Credit or debit cards
It’s also important to choose the right payment terms for both you and your clients. Usually, payment terms are referred to as net days. Net 7 is 7 days after the invoice date; net 30 is 30 days after the invoice date. However, if you don’t wish to offer a line of credit to your clients, you can agree on upfront payment or payment upon delivery.
3. Configure automated reminders
With invoice software, you can automate the follow-up process and set up automated reminders to clients when an invoice is overdue. Automation saves you time and ensures that you follow up promptly. With invoice software, you can choose when the reminder should be sent, the frequency of the reminder, and also customize the contents of the reminder.
4. Follow up with clients
If the reminders don’t encourage the client to pay, it’s important to follow up with them directly.
If you use invoice software you can use the dashboard to track all your invoices, to see which have been paid and which you need to follow up on. You can also turn on notifications, so that you get notified via email when an invoice is overdue.
Reach out to the client to find out why they haven’t paid: Maybe they’re dissatisfied with the product or service, maybe they didn’t receive the invoice, or they have questions about the content of the invoice, or maybe they’re not able to pay.
Once you understand the issue, you can take steps to rectify the situation. For example, if the client is struggling to pay, you can suggest a payment plan that allows them to pay a small amount per month.
Conclusion: How to get paid early
Invoice technology can speed up your invoicing process and save you time and money. With invoice software, you can send out professional invoices faster, easily offer different payment methods, automate the follow-up process, and have all your invoicing data at your fingertips. You can also see who your top clients are and which client relationships you should prioritize. It’s time to upgrade your invoicing process and leverage technology to get paid early.
