Don’t get stuck in a holding pattern because of late payments from
customers. Keep your cash flowing by maintaining both your client
relationships -- and your sanity.
Create a payment calendar. For large jobs, don’t just
send the client one big bill at the end of the project. Instead, map out when
you'll hit specific milestones. Once that calendar is mutually agreed upon,
send the client invoices as those aspects of the work are completed. Make it a
policy that you won't continue with the next step until you receive
payment for the prior one – and send those invoices right away.
Make it worth their while. If you
can swing it, consider incentives to encourage your customers to pay or
pay through a platform that’s most convenient to you. Small nudges can be
powerful habit changers.
Be a person, not a bill. Send
handwritten thank you notes to clients for big projects – and find out who cuts
the checks. Being more than another piece of paperwork to the accounting
department can get payments made more quickly.
Send regular reminders. Follow up
by e-mail or phone two weeks before invoice deadlines. If clients miss the
deadline, call them with a gentle reminder. Being professional, polite and
organized will make all the difference.
Stand your ground. Always be
upfront with your payment policies, and make sure you protect yourself legally
by agreeing to payment
collection terms before you get to work for your clients. You also
might want to consider charging
late fees.
Maintain a paper trail and employ the necessary legal advice in the event there
is a dispute.
Entrepreneur.com
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