We all know that running a business is not easy. There are many factors to consider, including the financial aspect and managing your customers. Unfortunately, you can never be sure if your customer will pay their invoice on time or not.
However, there are several ways to avoid late payments by asking questions while Invoice Financing Australia before signing off on the deal in the first place:
Send a series of emails and calls
- Send a series of emails and calls. Sending multiple reminders may seem like it’s going to annoy your customer, but Invoice Financing Australia can actually be beneficial in the long run.
- Ensure you call them, too. If they don’t pick up, make sure you leave a voicemail that’s clear and easy to understand so they have no excuse for not understanding what kind of payment you’re looking for or when their bill is due by.
- Send a reminder email right away if they don’t respond right away to your voicemail message or phone call (depending on how much time has gone by since they first received it). After that, wait at least 24 hours before sending another email/voicemail reminder–if needed–but try not to get into “nagging” territory!
Consider a payment plan
- Offer a payment plan: You can offer a payment plan to help your customer pay on time.
- Payment plans are a good way to avoid late payments.
- Payment plans are also a good way to build a relationship with your customer and it’s easier for you if they know that you’re willing to go the extra mile for them (which will make you look like someone who really goes out of their way for them).
You can customise it according to their needs, which is great because it means that they can pay back small instalments over time without having too much pressure on themselves or causing any stress.
Place a lien on their business
If a customer has not paid your invoice within 30 days of the due date, you can create a lien on their business. A lien is basically an agreement between two parties (you and your customer) that states that if one party does not pay the other, they must forfeit all rights to their property, or at least some portion of it.
Unfortunately, there is no way to force someone to sell their house or business in order to pay off an invoice—but there are ways around this problem. If you place a lien on their property, then it becomes much more difficult for them to sell without first paying off what they owe you!
You can avoid late payments if you ask the right questions and run a credit check.
It’s important to ask the right questions and perform a credit check. Questions like: were they once a defaulted account?
How much do you owe them? Do they pay their bills on time? What is their current financial situation, and how long have they been in business?
If your customer has been making payments on time but is currently experiencing financial difficulties, you may be able to negotiate an extension or delay of payment.
If it appears that your customer has good intentions but lacks adequate cash flow, consider other options like invoice financing. Invoice Financing Australia allows businesses to access short-term liquidity when they need it most by selling their unpaid invoices at a discount through an online marketplace.
You can avoid late payments by asking the right questions, running a credit check, and offering reasonable payment plans.