If you’re reading this it’s likely that you’re facing one of the most common issues related to service based business - getting paid on time.
Whether you’re just looking for ways to improve your process or if you have a forgetful client on your hands, consider these 8 tips to start getting your dough on time and without the hassle.
1. Incentivize them.
There are a few different ways that you can incentivize clients to pay their invoices faster. My particular favorite is to simply thank them in advance of the payment. This little hack sounds too simple to be effective, but I’ve found that showing appreciation for a timely payment before you receive it uses the psychological principle of reciprocity in a very effective way that doesn’t cost you anything.
Another way to incentivize clients to pay faster is to offer a marginal discount for paying early. This is often used for product based businesses that purchase large shipments from suppliers. The terms might state that payment is due within 30 days, but paying 10 days early will earn the client a 5% discount.