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As a small business owner, your clients are your bread and butter. Without them, your business wouldn’t be the resounding success that it is. However, just like you love your clients very much when you see your revenue go up, that affection can quickly turn sour if you see your books turn red. If you’re struggling with getting your clients to pay in a timely manner, but you don’t want to burn any bridges in order to get paid, you may need to step up your collection game. To help you stay afloat, here are four tips to help you coax your clients into paying you on time.
It can be tempting to bask in the afterglow of a completed project and rest on your laurels after a major job is complete. Don’t give in to that temptation. Once you finalize a project, get that invoice fired off right away. The sooner your client sees that they owe you money, the faster they’ll pay it. After all, nobody likes having a looming debt over their heads, right?
If you’ve sent out an invoice but the client not paying the invoice, then you may need to apply a little bit of pressure. While you don’t want to get overly aggressive right away, you may need to send reminders to let them know that their payment is overdue. If they’re not paying you, they may have merely forgotten. A follow-up to your initial invoice may be just the kick in the pants they need to finally pay you.
It’s important to remember that your clients often have the best of intentions. They’re not trying to stiff you; they may simply be just a little bit strapped for cash at the moment. To help take that pressure off them, find ways to help them part with their money sooner. Accept multiple forms of payment, such as checks or credit cards. You can also set up payment plans or flexible terms, which will make it easier for them to pay on time.
If your clients are still not paying you, then you may need to get firm. If you’ve been enlisted to work on a long-term project with them, then you may need to start denying them services. Nothing will put a fire under a person quite like seeing a half-finished project and a looming deadline. By telling them that you won’t work for free, they’ll recognize that you’re serious and finally cough up the dough.
Being a business owner can be stressful. From building up a client base (read: one that actually pays on time!) to securing the capital to get started, there’s so much to consider when getting started. To learn more about how we here at Amp Advance can help you get your business off the ground with a small business loan or line of credit, please don’t hesitate to contact us today!