Getting paid promptly for the products and services you’ve provided shouldn’t be difficult, but unfortunately it often is.
The UK’s late payment culture means that many SMEs are having to wait far longer than they should to receive payment from their debtors. Unpaid invoices can have a negative effect on a business’ cash flow, slowing down business growth, and even becoming a threat to a business’ survival.
To improve your chances of getting paid promptly, review the layout and content of the invoices that you’re sending and implement the five tips in this blog to create invoices that get paid quicker.
Make it professional
Using a professional invoice template or software will ensure that your invoices are laid out professionally and contain all the necessary information.
Your invoice should include:
- Your business information in the header.
- Client’s billing information.
- Invoice number.
- Date of issue.
- Due date.
- Itemised list of the products and services you’re billing for.
- Total due.
- Details of any tax due.
Specify your payment terms
Communicate clearly how and when you expect to be paid to ensure that everyone is reading off the same page. It is a good idea to discuss and agree payment terms verbally before sending your first invoice so that the terms don’t come as a surprise to your client.
Detail the services you’re charging for
Avoid simply providing one total amount due. Where relevant, break down the cost and list any individual items or services you have provided so that it is easy for the client to understand how you’ve come to the total figure.
Offer multiple payment options
Make it as simple, quick and convenient as possible for your client to pay you by offering different payment methods.
Penalise late payments and reward early ones
One sure fire way to improve your chances of getting paid on time is to provide a monetary incentive. Providing a small discount for prompt payments will save you plenty of time and money in chasing payment. In the same way, charging interest on late payments can deter customers from putting off paying your invoice.
For more help and advice with arrears prevention, speak to our team of experts here at Churchill Recovery Solutions by giving us a call on 0333 320 0748.