It helps more to get paid faster than to focus on hard numbers when going through your books. Quicker payments result in more immediate changes to your business. So, here are some tips to help reduce some of the costs associated with delayed payments and slow contact methods.
Work for the Lowest Possible Rate
There are many processing fees associated with modern business transactions. And for small businesses, these can be unmanageable. Yet you can change your habits to ensure you decrease costs by looking for the lowest possible rate. You can use services like PayTrace when you need help with corporate payment systems that are getting out of hand. But typically, larger banks will offer better payment processing (cheaper and faster) than smaller ones.
Make Sure to Invoice ASAP
The faster you can get your invoices out, the quicker a customer can respond. It helps to invoice as soon as work or service is completed. Or you can invoice in advance, with a deposit required too. If you don’t send invoices ASAP, the entire process is at risk of being delayed. Which also means delayed payment. And there is also the chance a customer loses your invoice, becomes distracted, or even decides they won’t pay if you leave it for too long.
Offer Multiple Methods to Get Paid Faster
There are many ways to pay for something these days. O, you must be open to accepting newer methods. Cash and debit cards are fine, and most people will use these. But you must also install systems to receive digital payments. These include digital wallets such as Apple Pay, PayPal, and Venmo. But also emerging cryptocurrency payment cards and solutions. Some of the most popular crypto debit card services include Coinbase Card, Nexo, and Crypterium.
Offer Incentives and Discounts
Studies have shown that incentives are a viable method of ensuring on-time or early payments. It may not sound mathematically correct to offer a discount for paying you. But this can actually encourage customers to make sure their payments are always on time. It is delayed payments that can cause the biggest headache for your accounts team, and it also means there are fewer funds to work with at any given time. And this can all but put a dent in your operational plans.
Digitize Reminders and Payments
It isn’t cost-effective to send out letters all the time, especially repeat ones. Paper is expensive, and postage becomes a nightmare. Then there’s the added sustainability and environmental impact. You can use automation to catch unnecessary repeat letters. But it also helps to offer the option of digital contact with customers. Digital contact is instant, meaning customers receive emails and invoices straight away. And as a result, you may also get paid right away.
It helps your business overall when you get paid faster. You can use better payment processors, such as larger banks. But you can also accept multiple ways to pay from your clients, like digital wallets. And you can dramatically speed up payments with digital invoices and reminders.