Start-up life is getting better and better in the United Kingdom. Those who would like to follow their passion and start a business should not hesitate to do so. Britain is a hassle-free place to do business as compared to other parts of the world. Not only are there many opportunities available in several industries, but also there are very few restrictions when it comes down to starting a new operation. It is practically the shortcut to the American dream.
The moment that you choose to start your own company, it is impossible to know what will happen. However, that is the beauty of it. You do not have any idea how much money you are going to make or if your skills are going to be enough.
You have a newly established business. What is more, you have a product or a service. You have managed to land numerous customers. Speaking to every person that was willing to listen and getting many people involved in the research process certainly did the trick. There is an itsy-bitsy problem, though.
Clients frequently miss the invoice deadline. They do not do it on purpose, but it does not matter. Unpaid bills do not allow you to go further. The point is that they can hurt your small business. It is necessary to handle the issue as soon as possible. This is what you need to do to minimise the risks of not getting paid on time.
Implement a Credit Management Policy
In an ideal world, you would get paid on the spot. Unfortunately, you do not live in a perfect world. Customers have their fair share of difficulties. If they are required to deal with unexpected additional expenses, it is impossible for them to stick to the invoice payment terms.
The longer you wait, the more your cash flow will suffer. It is key to make sure to implement a credit management policy. Providing a precise definition of credit management is difficult if not impossible. What you need to understand is that it is a process by which one makes sure that buyers pay on time and poor debts are managed in an adequate manner.
There is no better time than now to implement a credit management policy. The main advantages of doing this include being able to make sound decisions and deploying internal data for credit analysis.
Be Certain that the Invoice Has All the Necessary Information
In spite of the fact that you have many tasks to accomplish, you have managed to send customer invoices. This may be so, but did you make sure that the itemised bills contain relevant information? Maybe not. Timesheet Portal insists on the importance of including distinguishing details about the payee, such as company name address, phone number, VAT number, and so on and so forth.
An invoice is a commercial document, which means that it needs to be carefully prepared. If you have a hard time staying on top of invoicing, invest in professional software. You will be able to generate client invoices in a jiffy and even include your business logo. The options are configurable, so it is possible to determine who to classify the invoices. Additionally, you enjoy bespoke templates.
After you include the necessary information and are done with the accounts, you can email the invoices from the system to your customers. Successful business owners automate processes. If you too want to be successful, spend time on growing your business and not manually creating invoices.
Accept Multiple Payment Options
If you are not already accepting multiple payment methods, you are losing out. It is a lot easier for individuals to pay you when the payment process is simple and fast. Customers should be able to choose between several options, including but not limited to onsite payment, checks, debit and credit cards, and Paypal online payments. In the United Kingdom, for instance, shoppers have diverse preferences. This means that they like using various payment methods.
It is needless to say that you have to cater to the needs of your clients. Start-ups that accept multiple payment options are able to increase their revenues and diminish their costs. As far as consumers are concerned, they can take control of their finances and purchase even more products and services. You do not have to worry that you will not be paid in 30 days.
Say “Thank you” All the Time
Some people need not be reminded to pay their invoices on time. They gladly pay the money that they owe, knowing that it is to the advantage of both parties to be responsible. It is very important to cherish these people. You know how to say “Thank you” and chances are that utter these words as often as possible. Maybe you are not saying these words enough. Every time that a client pays their bill on time say the three magic words.
Customers will be indebted and, what is most important, they will feel appreciated. It is not all about manners. “Thank you” represents a powerful tool for lasting business. And it is one that you can afford. If you have the time, write business thank you notes. Thanking for the business will lead to an increase in the number of invoices paid. It is essential to be polite, yet firm. This means that you have to follow up on late payments.
responsible for success. in your line of work, you will come across people who
do not pay their invoices on time at some point or the other. This is precisely
why it is important to know how to deal with the situation and ensure that
something of the sort never happens again. You cannot afford to waste precious
time chasing down payments, so perform a customer credit check, include
relevant information in the invoice, accept multiple payments options, and say
“Thank you” all the time. Unpaid invoices will be a thing of the past.
About Author: Chris Fraser
Chris has served as a business advisor to a big list of small and micro businesses; localized businesses and social enterprise in particular. Chris is also an avid reader and loves to stay updated about latest tech and innovation.