September 16, 2019Late Payments , Subcontractors & Tradesmen
No matter what trade you’re in, we all face a common issue… Not being paid on time. Or sometimes, not even getting paid at all!
When you’re busy finishing up on a job and booking new ones, there is nothing worse than having to worry about chasing up customers for their late invoices on-top of your all ready busy schedule.
Thankfully, there are 5 things you can do to reduce and even eliminate your payment problems.
Step 1. Discuss Your Terms Upfront
You should always explain your payment terms before you even pick up the tools for a client.
Make them aware of what they need to pay upfront, when their next payment is due and when future ones are needed to be paid.
If, for example, you have a call-out fee, mention this before you even get to the client’s home.
If you are clear with your financial instructions, you’ll have less trouble receiving payments from your customers. They won’t be able to use any excuses if you have given them a clear path to payment.
Step 2. Send Out Invoices ASAP
A lot of tradies get so busy that they don’t get around to sending out invoices for weeks, or even months after they’ve finished a job.
Not sending out your invoices within a few days after completing a job also encourages your clients to take their time paying you back. To get paid faster, invoice ASAP.
Step 3: Make Sure Invoices Clearly Display Relevant Payment Information
When creating your invoice template, make sure the balance owing, due date, and payment information are 100% clear to your customer.
This information should be in the best position on the page and should be easily read.
Include all the payment methods you offer, as well as the details on how to pay each one.
By doing this, you reduce as much friction as possible and create a smooth process for payment.
When people have all the information they need, they have no excuse to put payment off until later.
Step 4: Automate reminders
Automating payment reminders is also key. Rather than having to remember to chase people up yourself, utilize technology. It is 2019 after all!
Platforms such as Pencil set up automatic reminders to customers, asking for payment so you can just stick with what you do best, being on the tools.
While some customers you get may be trying to delay payment, a lot of them just simply forget that they have a payment due.
Step 5: Provide Incentives
If you still find you’re having payment issues, try providing some incentives to your customers.
A great option is to incentivize people by charging interest on any overdue accounts, or by refusing to continue with the job until their bill is paid.
By signing up with a platform such as Pencil, you can stick to your work and leave the payment collection to us.
Rather than spending your time sending out invoices, signing a bunch of paperwork, sending out payment reminders and actually getting payments put into your pockets. You can spend the end of your workday enjoying a cold beer, knowing the money is going straight into your account.
If you’d like a FREE 30 day trial of PencilPay, click here to book a demo