Having Cash Flow Issues? Here Are 3 Things You Can Do to Get Clients to Pay You on Time

Set out payment terms

Ensure you set out clear payment terms from the get-go. Make sure your client knows exactly what your terms are and what will happen if payment isn’t made. This may be a difficult conversation to have, but the later you leave it the harder it’s going to get. If you have a new client it may be worth asking for 50% upfront payment and then obtaining the rest after the job is complete.

Offer a discount

We all enjoy feeling like we received a good deal, so why not offer your clients an incentive to pay early. For example, some businesses offer a 5% discount for payments received within 10 working days of the invoice being issued. Clients are more likely to pay faster as they feel like they are getting something in return.

On the flip side, you may decide to charge interest on payments made later than 60 days. If you do decide to start charging interest on late payments, ensure your clients are informed, you may even have to issue new terms of business contracts.

Remind them

You’re busy, as are your clients. Send them a reminder if they haven’t paid you in 15 working days, and follow up too. You can standardise the emails that need to go out at each 15 working day interval. The emails should be concise and firm but not aggressive, after all, they are your client and you want to maintain a relationship with them.