Chasing clients for payment. Does it need to be cat and mouse?
Chasing clients for payment is often an unavoidable task for businesses which provide their customers credit.
It can be cat and mouse, with your credit control team chasing down busy or elusive clients, who have let an invoice fall overdue for payment.
It doesn’t have to be a game of chase however. Very often, clients who don’t pay on time, might not be aware of your payment terms and when an invoice actually falls due for payment.
If your payment terms are buried away in your terms and conditions, there is a good chance the client won’t have read them or be aware of them.
We find that adding a cover sheet / summary to T&Cs, with the key provisions such as payment terms, can help clients become aware of your terms at the outset of the relationship.
Also, simple things such as stating the due date on the face of the invoice and / or the letter or email sending it out, can get the payment date on the client’s radar.
Sometimes, a brief reminder before an invoice falls due, can remind the client to pay it on time.
If you work with and educate your clients about when a payment will fall due, you will create a better relationship and hopefully put the days of Tom and Jerry behind you, and the need for chasing clients for payment to be less common.
If you want more top tips to improve cash flow, including preventative measures like above, please download our free top tips at the link here.