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By Sigrun WinklerOn Feb 04, 2019 Invoice Templates

If incentivizing early payments is a carrot to encourage prompt payment, charging for late payments would be the stick. By adding late fees to your invoices, you’ll add a sense of urgency to your invoices. However, by doing this, you need to be prepared for vocal feedback from your customers -- especially those with the bad habit of paying late.

Firstly, if you’re addressing your invoice to your contact on the customer side but you’re constantly experiencing late payments, you might want to check with them about who’s in charge of paying you within your customer’s company. There’s a likelihood that your contact diligently forwards your invoice to the finance team, but it could be lying lost and forgotten in the latter’s inbox. Secondly, if you’re sending your invoice to more than one person, you’re also running the risk of everyone leaving it on the backburner, as everyone assumes that someone else will be taking care of it.

How do you accept payments from your customers? For example, do you only accept cheques sent in the mail, or through PayPal? If you do, it may be time to rethink your policy on payment methods. By setting up more payment options for customers to choose from, you’re making it easier for them to pay you. This way, instead of having to make a special trip to the post office, they’ll be able to pay you in a way they’re comfortable and familiar with.

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