Getting Your Customers To Pay Your Faster: How To Make It Happen
So, what can you do to get faster payments? What strategies are available for people like you?
That’s the topic we explore in this post. We look at how businesses can collect money faster and do better overall.
Offer More Payment Options
One relatively easy strategy is to simply offer more payment options. Accepting credit cards, PayPal and other types of bank transfers opens up options for people and makes it more practical for them to transfer funds.
More payment options aren’t necessarily about providing people access to credit (although that can help). It’s also about just doing the little things that can make a difference to their convenience levels.
Mobile payments are also helpful using QR codes. These are handy when you’re interacting with customers remotely and finding it more challenging to get them to pay via their browsers.
Build Strong Relationships
Another approach is to build strong relationships with your customers. The more they know you, the better off you’ll be.
Building strong relationships requires open communication and transparency. It reduces the risk of late payments because of the improved rapport. Customers want to pay you because they feel it is their duty. If they don’t know you as well, it is the opposite.
It also lets you personalize your approach to payments. You can work around your customers’ needs instead of insisting that they follow yours.
Make It Worthwhile Paying Early
You can also introduce methods to make it worthwhile for your customers to pay early. Adding incentives increases the likelihood that they will hand over the money by the deadline.
For example, you could offer a discount for paying within the first seven days. Or you could establish a reward program, offering benefits to those who pay on time, giving them points that contribute to money off their next service.
Use Additional POS Systems
You should also consider where you can implement POS systems or use a virtual terminal. These solutions are helpful because they make it possible to take payments more broadly.
Additional POS systems are an upfront cost. But if you use digital versions, you can simply use existing devices in the field. Cloud-based payments are becoming increasingly the norm.
Follow Up Quickly
Once you request a payment, make sure you follow up promptly. Don’t allow invoices to go unpaid without reminding clients of their duty to you.
Following up quickly is, fortunately, something you can now automate with modern systems. These send emails automatically to the individuals who owe you money, encouraging them to hand over cash to your business.
Assess Creditworthiness
Finally, it is a good idea to work with customers with good credit ratings. These individuals are most likely to pay you on time. You can use credit checking services when approached for a large contract to assess your risks.