Although there are several options for collecting on unpaid invoices, business owners need on-time payments to keep things running smoothly. Late payments can disrupt the flow of operations, thereby compromising your business finances.
You may already have a strategy for dealing with nonpaying customers, but if the problem worsens, you might need to modify your collection technique. The easy tips below can help ensure that you’ve done all you can to encourage payment before the situation becomes more problematic.
Remind them frequently
Some people are forgetful and simply need a reminder about their upcoming and past-due bills. Set up an email schedule that sends reminders to customers about their obligation before the payment due date. If they still don’t pay, send an email reminder once a week until they do.
Offer early payment incentives
Many consumers are more apt to pay before the due date if they get a reward. Offer a small discount or other incentive to customers that pay their invoices early. For example, a 2% discount or valuable coupon savings could encourage early payment. No one likes to pass up a deal.
Take online payments
Offering a variety of easy pay options can encourage early or on-time payments from your customers. The easier it is for consumers to pay, the sooner you get paid for your goods or services. Consider adding online pay options to your website, and include links to your payment page in your email correspondence.
Unfortunately, some consumers and associates will never pay their bills regardless of the collection steps you take. Business owners facing habitual nonpayment may need to explore their legal options to collect under Florida law.