The idea that a business needs to convince or encourage clients to pay invoices for the services they use within an appropriate timeframe can seem comical on the surface. But of course, providing a few weeks (or even months) to pay depends on the scope of the job and the value of the client itself. It’s not uncommon for B2B services to give their clients longer to pay given the rigors of business timelines and planning. It may convince a client to choose you over another service, and for some enterprises, that delay is worth it.
But of course, it helps your cash flow if the money is paid as soon as possible. There are way you can incentivize this as a standard, without necessarily relying on invoice loan services that take hefty fees from you and somewhat defeat the point of convenience.
In this post, we’ll discuss a few measures you can take to gain the money you’re entitled to, only more quickly, and without souring relationships.
Three ways to encourage clients to pay invoices:
1. Offer Promotions & Discounts
Money talks, perhaps more than anyone wants it to, so a simple discount can work wonders for getting paid faster. You could think about offering 5% off for clients who pay within a week of receiving their invoice. This might seem like you’re losing money, to begin with, but getting paid quickly means less time chasing payments and better cash flow for your business, and it also helps you avoid those loan firms like before. Moreover, clients love feeling like they’re getting a deal. You could even make it a seasonal thing – running special early payment offers during slower business periods helps keep money coming in when you need it most, and many firms do this.
2. Categorize Trusted Clients For Prioritized Bookings
Keep track of which clients consistently pay on time, as these are your business’s best friends, and they deserve special treatment. Give them the first pick of appointment times or priority slots in your schedule if you can. When new work comes in, bump them to the front of the line if it’s plausible to do so. You could even create a simple tier system – gold clients who always pay within a week, silver for those who pay within two weeks, and so on. There’s no law against which client you serve first. Just don’t tell other clients or give them worse service when they do receive it.
3. Offer Multiple Payment Options
Just make it super easy for clients to pay you because it’s ultimately what you’re asking for. Some people love using credit cards, others much prefer bank transfers, and some still prefer writing checks (even though these do take a few days to clear of course). The easier you make paying, generally, the faster you’ll get paid. If you match this with other systemic efforts, such as revenue cycle management, you can make certain that the yield per customer or client ir properly managed and you benefit from both sides.
With this advice, we hope you can more easily encourage clients to pay invoices on time.
