Late paying clients do happen and can cause problems with a knock on effect for your business. All payments have a domino effect on other costs, overheads and margins within the business so if a payment is late there can be many further delays as a direct result.
Though late payers are a situation known to most companies it is the smaller businesses which feel the bite the most. However there are ways that these late paying clients can be dealt with.
Before advancing with any kind of action towards your client it's worth taking a look at your payment system. Having a difficult system to manoeuvre around can be a contributing factor to delayed payments. In order to increase your chances of punctual payments the system you use should be easy and user friendly. Having Fast Invoice, the small business accounts software, can help you make this possible.
If your clients understand your terms it's much more likely that they will pay you promptly. Yet if you conclude that the procedures and processes you use with your invoicing software are water tight you may want to consider taking further action.
With Fast Invoice, the free online invoicing software, you have the ability to set up automatic reminders. In some scenarios it may be the case that your client has simply forgotten about paying so a reminder is the first step in to settling outstanding bills. Fast Invoice will compile a documented invoice which contains all of the necessary information regarding the order so it can be completed quickly and easily by your client.
Although a reminder is normally all that is required to obtain the missing payment there can be other situations where the client claims they have paid. Fast Invoice has the capability of tracking all your clients. The client database tells you how much your client needs to pay and how much they have already paid so you can give exact figures of the amount you are waiting for.
The free online invoicing software Fast Invoice can also be used to add interest onto the outstanding invoice. Many small businesses stray away from using these measures however if it is a case that the client does not or will not pay then measures have to be taken. Using the invoicing software Fast Invoice you can create another invoice which reflects the added interest, which then gets added to the outstanding bill automatically.
Applying interest using this invoicing software may or may not mean the loss of a client however in the concept of what is best for your business, having a client who does not pay on time can be a hindrance more than an asset to your company. Fast Invoice takes away a lot of the pressure of chasing up payments as all the figures and reports you need are visible on the client's personal page, and this process can be fully automated. Chasing up stray payments and missing invoices is a thing of the past.
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