What is your best tip to have customers pay you faster?
To help business owners get paid faster, we asked CEOs and business professionals their best insights. From making the switch to digital invoices to accepting multiple forms of payment, several ways may help you collect your customer payments faster for years to come and the continued success of your business.
Here are eight ways to get paid faster:
- Invest in Lockbox Options
- Ask for a Payment Deposit
- Switch to Digital Invoices
- Accept Multiple Forms of Payments
- Send Invoices Right Away
- Incentivize Early Payments
- Discount Monthly Subscriptions
- Send Clear Reminders
Invest in Lockbox Options
For companies that receive high amounts of check payments, I would recommend researching lockbox options where a 3rd party deposits all checks for the company and sends a file to the company that they can then upload into their accounting software. This is a huge time saver compared to the traditional method, and I would highly recommend it.
-Adam Korbl, iFax
Ask for a Payment Deposit
When you provide a service, like lash extensions, the price can vary. That can make it hard when it comes to customers paying out for service. It’s easier when you’re selling a product or some sort of supply. The best thing to do is list base prices on the website and make sure it’s clear that the actual price may differ, but at minimum, this is the price range that should be anticipated. Don’t feel bad about putting payment terms on the website that break down things like possible add-ons that would cost more, if a payment deposit is required, what payment types you accept, or whatever else you see fit. Being transparent about the pricing and your payment expectations can really help keep the client and you, as the business owner, on the same page.
-Vanessa Molica, The Lash Professional
Switch to Digital Invoices
A great way to have your customers pay you faster is to make it easy for them. Switching from traditional invoices to digital invoices helps make it easier for your customers to pay without the need for scanning documents etc. Invest in a digital invoicing platform and watch your invoices start to come in faster.
-Darren Litt, MarketerHire
Accept Multiple Forms of Payment
One tip to have customers pay you faster is to accept multiple forms of payment. This can include multiple credit cards, checks, cash, and debit cards. Allowing your customers to pay you the way that works best for them can really speed up the time it takes for you to receive payment for your goods and services.
-Lauren Picasso, Cure Hydration
Send Invoices Right Away
Invoice customers right away to get them to pay you faster. If you sit on an invoice for too long, it’ll delay the whole payment process and cause it to go slower. By invoicing customers immediately after the work is completed, you ensure that there won’t be too much of a lag between when the work was done and when you get paid.
-Jeffery Brown, Big Fig Mattress
Incentivize Early Payments
Give incentives to customers when they pay before the due date. That could be money off their next bill, an extra product, or a shoutout on social media platforms of how great a customer they are. People love incentives, find ways to incentivize your customers and they will pay faster and on time.
-Bari Medgaus, Stabili-Teeth
Discount Monthly Subscriptions
Offer discounts for monthly subscriptions versus one-time purchases. This will not only get your customers to pay faster but it will incentivize them to sign up for the monthly subscription as they will see that overall it’s a good investment. Plus customers like to sign up for monthly subscriptions as a convenience if they don’t want to have to always remember to restock on a certain product.
-Mary Berry, Cosmos Vita
Send Clear Reminders
Make sure before any deals are officially made that the payment terms are completely clear. This way, both parties will know for sure when payments are supposed to come in as well as what the consequences would be for missing any payments. Do your part as well by sending invoices on time in order to remind your customers of upcoming payments.
-Matt Seaburn, Rent A Wheel
If you’re going to bill for products & services after-the-fact, I would highly recommend you investigate receivable financing. Receivable financing is Off-Balance Sheet Financing that converts receivables to instant cash, your credit score usually doesn’t come into play, the creditworthiness of your clients is the key, you only personal guarantee your receivables as collateral (NOT YOUR HOUSE OR OTHER PERSONAL ASSETS), the real costs of funding is usually below the rate of prime, you will protect the integrity of your corporate seal, you can grow exponentially based on the creditworthiness of new clients (not on the reliability of having other assets to backing up the use of funds), you can add new revenue streams through receivable financing. Receivable financing is no longer a rich man’s game. Receivable financing puts even the smallest businesses on the same playing level as the big boy’s. Receivable financing is a perfect vehicle to growing and expanding your company without having to go in debt. Make it one of your top choices!!!