One of the most frustrating challenges when running a business can be dealing with clients who don’t pay. In this article, we discuss some of the steps you can take to ensure you get paid on time. 

Setting clear payment instructions 

Establishing clear payment instructions from the outset and ensuring you’re on the same page regarding due dates, payment methods, etc., can help reduce confusion and provide clients with clear information about payment. 

By providing written quotes, you can avoid potential disputes over costs and charges, as well as expectations around the scope of work provided. Written quotes also serve as a reference point, preventing your clients from questioning your charges later. Include clear payment instructions on every invoice, such as your payment method, account details, and due date. If it’s a big job, get a deposit before work begins, and continue to get progress payments throughout to ensure a continuous cash flow throughout the project’s duration. 

Issue statements regularly and follow up 

Send regular statements so clients can keep track of their balance. Invoice immediately as soon as a job is completed, so they’re not lumped with a larger invoice later down the track. If it is a new client, and you’re not sure if they have received your invoice, follow up with a friendly phone call. 

Check your bank account regularly to monitor who has paid and make sure you keep your accounting software up to date to ensure accurate financial accounts. Send polite reminders. If an invoice is not paid on time, send an email straight away. This helps maintain professionalism while gently prompting clients to pay. 

Offer payment plans 

If an invoice remains unpaid, follow up with a phone call and speak directly to the client to identify any potential issues and clarify when you might receive payment. If a client is having financial issues, a payment plan can be a helpful way to guarantee you get paid. Ensure you come to an agreement on the amount the customer can afford to pay and specify a time period, as part of the payment plan. Furthermore, allow regular clients to make payments upfront. 

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