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Website Analysis Report Template Sample Usability Invoice Templates Website Analysis Report Template

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.

Once the due-date has passed, it’s time to follow up with your clients before you begin implementing late charges. After all, it’s possible that your invoice has slipped their mind, or it’s been lost in the mail. For a start, you can send out reminders like a personalized email, a text, or a phone call. Sending these reminders lets you remind your client about the money they owe you, and that you are serious about getting your invoice paid. If you’re sending your invoices through email, start using software that updates you once the recipient opens the message.

However, setting Net-30 payment terms doesn’t mean that you’ll definitely get paid on time. Most debtors pay 2 weeks late regardless of whether payment terms are due immediately or due in 30 days. In light of this, if getting paid in 30 days is critical for your business cash flow, decreasing your payment terms could be a great way to ensure you get paid in time. After all, if you’ve tried your best to provide your customers with goods and services according to their deadlines, it’s only fair for them to pay you promptly as well.

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