Top Tips for Getting Prompt Payments

Maintaining positive cash flow is essential for any business, big or small. Your business can experience some big problems when dealing with late payments, so it’s important to be proactive to stay on top of your invoicing.  
If you struggle with consistent late payments from your clients, here are some simple actions you can take that can really help.  
Don’t delay your invoices  
Your clients can't pay you if they don’t have your invoice. So be quick to send it to them. Customers are often more prompt in paying when they’ve just received the goods or services from you, so don’t delay. Cash in on that goodwill.  
Provide a detailed invoice 
Your invoice needs to have all the right information included. This includes your business details, their business details, payment instructions, description of the work or product, date of delivery, and any customer requirements like purchase order numbers. You also want to have a clear due date.  
Ask for prompt payment 
Many clients may be used to having weeks to pay invoices, but that’s changing. Over a third of businesses in Australia request payment within a week. It helps set an expectation of prompt payment.  
Make it easy to get paid 
Your clients will typically pay faster if they can use their preferred payment method. Consider offering various options, including cash, bank transfer, credit card or PayPal. You want as few barriers between you and your payment as possible.  
Don’t forget to chase payments 
You’re not done when the invoice is sent. You’ll still need to follow up with the client to ensure the payment has been processed. Have a system that lets you know when an invoice comes past due and give them a call. Don’t let them forget or think that you forgot.  
Withhold delivery until payment 
If you have new clients or clients with a history of late payments, consider switching up the process. Invoice them first, and don’t deliver the final service or product until you've been paid. This prevents the client’s ability to pay late or try to avoid paying completely, and it’s common practice for many businesses and services now.  
Consider direct debit arrangements 
If you have clients whom you work with or service on a regular basis, consider an agreement where you can charge their bank or card from your end. We do this with many of our clients because it makes it easier and faster for both of us.  
It’s important to remember that you provide a valuable service or product to your clients. And that should never be taken for granted. You deserve to be paid efficiently and professionally. 
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And don’t forget, you can always talk to us about your invoicing system and business practices. We can help you streamline things and get you paid faster. ​

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