Retail: Managing Money
6 ways to get paid faster
‘Cash flow is king’, or should we rather say ‘cash flow is everything’? Yes! To get paid in time as a small business is the difference between surviving and thriving – or having to shut down. We serve 6 invoicing hacks that’ll increase your chances of getting paid faster!
Remember that invoicing ultimately is the most important type of communication you have with your customer. By paying attention to how you invoice you increase your chances of getting paid – here are 6 hacks to get money to your account faster.
1. Send friendly reminders
If you’re being passive about past-due receivables (‘cause remember that if your customers don’t hear from you in a while, you’ll most certainly be the last of their vendors to get paid.
The phrase "what is an invoice" is among the top most Googled invoice-related terms. So make sure to …
2. Keep your invoices (seriously) simple
Make invoices that are as clear and simple as possible. Include how to make the payment and your contact information so your customers easily can reach out to you in case of confusion.
Always make sure to include all the information required, double check at GOV.UK.
3. Email proper invoices
Are you mailing your invoices? Sending your invoices by snail-mail is outdated and slows down the process – and decreases your chances of getting paid. With iZettle Invoice, you can quickly send the invoice directly after you’ve created it. Simple click at Email – it’s as simple as taking a card payment!
Also, remember that sending online invoices that your customers can pay with a click instead of enclosing an old school PDF is another way of boosting your chances to faster get money to your bank account.
Make it an habit to invoice ASAP!
4. Net or days?
Net 30 means that the invoice is due in 30 days from the issue of the invoice. 30 days are standard in the United Kingdom. Remember that these days are actual days, in other words irrespective of weekends, bank holidays or similar.
When we wrote this article and did some research around what invoice-related questions people out there type in on Google – we found out that the phrase “what is an invoice” is in the top… Well, so don’t forget that there are many customers out there who don’t know what “net 30” means. To keep it crystal clear in case you doubt, write “payment due within 30 days”.
If you're being passive about past-due receivables, you'll most certainly be the last to get paid.
5. Incentivise early payments
How can you encourage your customers to pay early? Can you offer future discounts or gift certificates? Studies hav also e shown that by simply using a polite language, maybe adding "Thank you for your business", you increase your chances of getting paid faster. At the same time, communicating in a friendly tone boosts the image of your business and brand as a whole!
6. Don't wait!
The sooner you send the invoice, the sooner you get paid. Instead of waiting until the end of the month, send an invoice to the customer as soon as you’ve completed the sales. Just make it an habit to invoice ASAP!
Numbers speak a different language than words, according to Angela Löthwall. No matter how inspiringly you can explain the vision and mission of your business – the numbers tell how healthy your business actually is.