Tips to Force Your Clients Pay Your Business Faster
Do you need help getting customers to pay on time? One of the most awkward moment is running a business where you have to be disturbing client to make their payment when due. You deliver your products and services on time but the client is taking like forever to make the payment.
Are you tired of having client hold your money when you need it badly to sort out some of your personal issues? You are not alone. What even sucks most is respectfully requesting for the payment and they are giving excuses. After using Abokifx to check the exchange rate, I have had to lose about 80 percent profit on a payment I should have collect two months earlier. It was a painful experience.
Slow Paying Clients? Tips to Help You Get Paid Faster
In this post, I will be showing you some tips on how to make client pay you faster. No matter the type of business you operate, these tips work.
Proven Ways to Get Clients to Pay You Faster
Choosing the Right Payment Terms
Often times, the reason why client delays in payment is because business owners fail to choose the right payment terms when signing the deal. As a result of this, you will find clients paying two weeks late.
It is wise you use a payment terms of adding two weeks to estimate the actual day when you will like to receive your payment.
Request an Upfront Payment
This is one best way to make clients pay you faster than normal. This is best done if you are working on a big project. Tell the client to make half the payment before the work can start and complete payment after completion of the project.
This will make client pay faster so that their work can be delivered to them on time. It will now make it look as if the work is being held by the client because of delay of payment. This put you at the good side of the deal.
On the other hand, it will be hard to tell a new client to make an upfront payment unless you are highly known and recommended by people they know and trust. But, when carrying out a second project for same client, request for an upfront payment.
Offer a Small Discount for Early Payment
A little motivational tips that can make clients pay you faster is by offering them a small discount for paying early.
Make it your policy to give client 3%-5% discount for paying earlier than the due date. This will make client pay faster I bet you. Who else don’t like discount?
Invoice your Client as Quickly as Possible
You should send an invoice to the client as soon as you finish the project. Some freelancers do drop a link using a payment platform that release the finished work after the client makes the payment.
Even if client don’t pay on that day you are expecting the money, they will still pay earlier than just waiting for them to pay on their own terms.
Institute a Late Payment Fee
Unfortunately, some clients will always prove stubborn no matter how many times you send them an invoice or remind them through email.
The best way to tackle late payment is to let the client know at the beginning of the project that there is a late payment fee when client don’t pay at due date. This will make them pay on time since paying late comes with a cost.
Even as small as 3% fee will grab their attention to pay early so they won’t have to pay the additional fee.
Give the Option to Pay Electronically
Not all clients have the time to do bank transaction through bank counter or use the ATM to make transfer. You can make client pay you faster by giving them the option to pay electronically online.
Using a payment system like PayPal makes it convenient for your clients to pay faster considering the dangers attached to the fluctuating dollar to naira rate. It also allows customers who are short of cash to use their credit card to make payment so you won’t be stuck waiting for your money.
Be flexible with your payment type. While others may like online payment, some prefer offline bank payment because they might be a regular person at the bank.
Reduce your Payment Terms
Reducing your payment terms can motivate client to pay faster because most times a short term payment make it look urgent to clients.
Most business owners and freelancers offer a 30-day payment term. Reducing yours to 15 days will be better. Even if your client doesn’t pay during the interval, your money will still get to you before 30 days.
On the other hand, if you offer a payment terms of 30 days, you may end up waiting for as long as 40 days or more.
Lastly on my tips to make clients pay you faster is to keep a good rapport with client. In other words, create a good relationship with your clients. This will make them see you as a friend and not just someone working with them.
Want Your Clients To Pay Faster? Focus on the relationship than on the money so that when payment becomes an issue, a healthy relationship will find a way to settle the problem and both parties will reach a good agreement.