7 Ways to Increase the Efficiency of Customer Payment Chasing for payment as a business owner can be a tedious task and often take up much precious time. The time that could have been spent elsewhere, especially growing your business.
Here are 7 ways to increase the efficiency of customer payment! 1. Pay attention to detail You need to make sure you send your invoice to the right person in time to be paid on time. 2. Your invoice must include your details as a sole proprietor or business
Only display helpful information, and make sure contact details are attended mailboxes or phone numbers in case of a query. Any unanswered uncertainty will delay your payment from your customer. In addition to the total amount owed for the line items that make up your invoice (each line item should be clearly described); we suggest always having the following information displayed on your invoice for your customer’s convenience
Company registration number
VAT Number (if you have one)
Payment due date.
Payment details: a payment button and/or precise bank details.
3. Make it clear to your customer how and when they should make payment for the invoice The more straightforward this becomes for your customer, the quicker you will receive payment from your customer. Let’s look at the how – Nagging Panda always suggests the implementation of a payment button in your invoice workflows, especially in the case of a once-off paying customer. The benefits of a convenient click-to-pay solution for your customer are massive and give fewer reasons for your customer to delay paying. A pay button provides the convenience of e-commerce within your traditional pay-on-receipt-of-invoice environment. Convenience is everything for everyone in today’s times. If you are issuing an invoice that includes your bank details, then ensure that the banking details on the invoice are evident to your customer. Check carefully for errors. Customers will become quickly annoyed going through the trouble of paying a service provider via the bank creation of a beneficiary, only to realize that payment cannot be made due to incorrect banking details. OK, let’s move to when a customer should make payment –
Your business model might cater to multiple customer payment terms. Often businesses will have different payment terms for different customers. Some examples of this might include:
Cash before delivery.
Cash on delivery.
A specific number of days after the date of invoice.
A specific number of days after the month-end statement.
Suppose you are a business that requires payment before the product or service delivery. You must indicate those terms on your invoice and preferably mention them to your customer during the sales process. Example: “Delivery will only be made once we receive proof of payment” or something along those lines. If you run accounts, be clear about the exact expected customer pay date. Let the customer know if there will be any interruption of service or no delivery of service or product unless payment is made. Example: “Service will be discontinued unless the account is up to date”. Communication is precious to a customer. 4. Placement of information It will most likely go unnoticed and unread if it’s in the fine print. If an instruction or requirement is paramount, place it in the invoice or cover email/letter/ message accordingly, so it is visible and readable. If you are unclear on your payment terms, the customer will be unhappy when you call asking for payment and very unhappy if you say you will not deliver or stop service. Remember, people, including you, don’t like being caught off guard, feeling like they are on the back foot, or embarrassed. 5. Remind your customer to pay If you invoice the customer on the first of the month and only require payment at the end of the same month, take it upon yourself to remind your customer to pay you. This does not need to be awkward in any way. Use Nagging Panda to automate communications. We suggest at least a day or two before the payment due date to remind the customer about payment and ask them to discuss any issues with you if required or confirm payment is scheduled accordingly. 6. Nag, your customer, to pay Suppose the payment due date has passed. Don’t delay. Ask your customer where the payment is and be fair about it. Mistakes and life happen – but don’t dawdle. If you don’t say anything, the customer will assume it’s okay and that you are not waiting on payment or perhaps forgot or don’t care. Sometimes the ones who make the most noise will get paid first. 7. Have a plan for if you don’t get paid that may or may not include debt collection but should most definitely include a solid automated approach to nag on SMS and Email.
Article by Nagging Panda - 2023/03/07