How to Reduce the Problem of Unpaid Invoices and Guarantee Timely Payment
Businesses experience huge problems if more customers continue refusing to pay on time. Unpaid invoices are a major problem. Small businesses have to find ways of eliminating this problem. Where complete elimination proves difficult, the next best option would be to reduce such invoices. The good news is you can do that.
You only need to implement a few measures to reduce these invoices.
What should you do?
Monitor what clients owe
First, keep a close eye on what your clients owe. Be on top of the situation. It’s good to be in a position where you know the outstanding invoices, what’s overdue, and what’s due soon. This way, you will not struggle to keep a mental record of all that you’re owed. It can be quite stressful to remember everybody who owes you money.
Fortunately, a very good solution for this problem now exists. Simply look for the tools to help you with this. Check for the right software to remind you when invoices are due. Some tools also send reminders to your clients the moment an invoice is due.
Set automatic reminders
The next solution involves setting up automatic reminders. You can only do this once you know the clients who are yet to settle their invoices. By setting up reminders, you will not have to do the actual follow-ups, which can be quite stressful and take up most of the time you should be spending on running the business.
Research shows that reminders improve the speed of getting paid on time by at least two days!
Businesses that set up reminders are 14% less likely to struggle with unpaid invoices.
You have a leeway to determine when to set reminders. Your options include:
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A few days before the due date
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On the due date
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A few days after the due date
Be careful with the reminders so you don’t appear too pesky!
The reminders should have a respectful yet firm tone.
Make phone calls
When the reminders fail to produce the desired results, you would be justified in picking the phone up to call those who are yet to pay. Phone calls remain some of the most effective ways of dealing with the problem of unpaid invoices. An email or text message might appear impersonal. A phone call is anything but impersonal.
Customers who struggle to respond to your emails and text messages can’t ignore phone calls. Phone calls offer clients a chance to explain what exactly is happening. The calls also offer you a chance to express your frustrations to the clients. Phone calls are more likely to provoke the right response from your clients.
Lastly, don’t entertain the excuse most clients give of waiting for the payday!
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