5 Ways To Getting Paid on Time
At Malloch McClean, we understand the ongoing concern that business owners face when it comes to ensuring timely payments from their customers. Late payments can disrupt cashflow, lead to unpaid supplier bills, and even require dipping into personal funds to cover operational expenses. That's why we strive to provide you with effective strategies to improve payment speed and increase the likelihood of receiving payments on time. Here are five tips we recommend to make the payment process seamless for your business:
Simplify payment for eCommerce businesses by offering multiple payment gateways: we suggest implementing various payment gateways, such as PayPal, Stripe, Apple Pay, or Google Pay, to cater to different customer preferences. By providing a choice of payment options at checkout, you enhance the ease and convenience of making payments, reducing barriers that may discourage timely transactions.
Enhance e-invoicing by including payment buttons: If your business relies on e-invoicing, our recommendation is to add payment buttons directly to your electronic invoices. By integrating payment buttons linked to platforms like PayPal or Stripe, your customers can settle their bills with just a click, eliminating unnecessary steps in the payment process. This streamlined approach ensures prompt payments and saves you the hassle of manual transfers or traditional payment methods.
Automate customer payments for subscription services: For companies offering subscription-based services, automation is key. We advise automating the creation of recurring invoices through your accounting software. Additionally, encouraging customers to sign up for a Direct Debit platform, such as GoCardless, ensures automatic payments on pre-agreed dates. This way, you can focus on providing exceptional services while eliminating the need for invoice generation and manual cash collection.
Integrate card readers with accounting software for retail companies: If your business operates in the retail sector, we recommend integrating card readers with your cloud accounting software. By leveraging a direct API connection between your point-of-sale (POS) card reader and accounting platform, you can eliminate the tedious task of manual data entry and receipt reconciliation. This integration ensures that all transaction data is seamlessly shared, saving time and reducing the risk of errors.
Send invoices promptly and clearly define payment terms: For all B2B businesses, issuing invoices as early as possible is crucial to accelerating the payment process. We advise splitting project-based fees into milestones and invoicing at key stages throughout the project. This approach not only prompts timely payments but also provides transparency and accountability. It's essential to clearly communicate payment terms on each invoice, making them enforceable and easily understandable. Optimal payment terms often range from 14 to 30 days, although specific industries may have different practices, such as 60 or 90 days.
At Malloch McClean, we are committed to assisting you in improving your payment processes and optimising cash collection. By implementing these five tips, you can provide your customers with a seamless payment experience while ensuring your business receives the cash it is owed promptly. Let us help you review your payment procedures and identify areas where enhancements can be made to streamline your operations. Contact us today to discuss how we can support you in achieving faster payment times and enhancing your overall cashflow position.