‘Cash flow is king’, so say they. And for start-ups and entrepreneurs, this is especially true. For a small business, being paid on time is the difference between surviving and thriving – or having to shut down. So read these 6 invoicing hacks to increase your chances of getting paid faster!
How are you sending invoices? Manually when your shop has closed or immediately through your point-of-sale system?
Remember that, ultimately, invoicing 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 help you get that money into your account faster.
1. Send friendly reminders
Don’t be too passive about past-due receivables! Remember, if your customers haven’t heard from you in a while, then you’ll most certainly be the last of their vendors to get paid.
“What is an invoice?” is one of the most Googled invoice-related terms. So make sure to…”
2. Keep your invoices (seriously) simple
Make your invoices as clear and simple as possible. Include information on how to make the payment, along with your contact information so customers can easily get in touch if they are confused by anything.
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 Sending your invoices by snail-mail is outdated and slows down the process – and decreases your chances of getting paid. Run faster with iZettle Invoice, an invoicing feature that allows you to 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 just a click instead of enclosing an old school PDF is another way of boosting your chances of faster payment.
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, not working days. In other words, the payment period includes weekends, bank holidays or similar.
Our research for this article showed that the most popular invoice-related question typed into google is “what is an invoice?”. It should come as no surprise, therefore, that many customers won’t be familiar with the term “net 30”. To keep it crystal clear, write “payment due within 30 days”, then there’s no confusion.
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 have shown that simply by using polite language (for example, adding “Thank you for your business”) you can 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 your 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 a sales. Make it a habit to invoice ASAP!
Remember that numbers tell the story of your business. No matter how inspiringly you can explain the vision and mission of your business – the numbers will tell you how healthy it really is.