Four ways to get paid in time

Nearly two-thirds of small- and medium-size businesses (SMBs) wait for 60 days before getting paid. These are the results of a survey carried out by the National Federation of Independent Businesses (NFIB). The respondents participating in the survey said that the delays were on the rise. Two-month long delays do not bode well for businesses. They need immediate funds to pay their bills and continue growth.

The good news is that business can reduce the waiting time to 29 days – nearly four weeks faster – if they use a combination of best invoice practices and the right invoicing tools. This blog suggests four strategies SMBs can use to get paid faster.

• Sign a written contract

Miscommunication or confusion on payment terms leads to delays. You can avoid much headache and long delays if you and your client sign a written contract in the beginning. The contract should specify the services and/or products you will provide and the payment terms. A clear contract cuts down on confusion and leads to stronger relationships.

•Send invoices quickly

Any delay in the delivery of invoices leads to late payments. Send your payments the moment you have achieved a milestone or finished a task. You increase the chances of a client paying you quickly when you do this because the work is still on the client’s mind.

• Create clear invoices

When you create an invoice, ask yourself if it is crystal clear. Miscommunication and over-communication are hindrances to quick payments. They can confuse your client. Include all the essential information in your invoice. And, present the information in a format that is readily readable.  There are a few excellent web-based invoice creation tools available. You can create clear invoices through them.

• Use an invoice management tool

Do not rely on paper and pen. It is time consuming, it is slow, and you are more prone to mistakes. An invoice management tool promises consistency. It is rapid. And if you are careful, it never makes a mistake. An additional advantage of software is that it maintains a professional tone in your invoices.

Businesses can cut down on payment delays if they agree on payment terms in advance, send invoices quickly, keep them clear, and use an invoice creation tool instead of relying on pens and paper.