How To Get  Customers To Pay Outstanding Invoices

How To Get Customers To Pay Outstanding Invoices

On 26 November 2018

Creating a personalized invoice is one of the ways of creating a good impression with your customers and your potential customers.

However for you as a business person you rarely have the time to sit down and create one for each customer you serve. Creating an invoice is a polite way of asking for payments from your customers. In this era technological advancements have made it easier for entrepreneurs as you can now create Online invoices in an instant.

Today we have prepared for you ways in which you can get your customers to pay your outstanding invoices without seeming too pushy.

  1. Have a Contract

             A contract is a legally binding document that subjects both parties to honour both their roles in any agreement. Having a contract will save you the headache of having to deal with sleazy customers who don’t want to pay for certain services offered. This is because you will have the right to take the matter to court in case the customer completely refuses to comply.

          Within the contract you should set clear terms that are straightforward. When you send an invoice with Pesapal, there is a field provided where you can specify the due date. In case you have customers who are regularly late, you can include a reminder note about the expected payment date in the personal message field.

  1. Send a Friendly Reminder

The goal is to seem assertive in a friendly way. You should be very careful not to seem repulsive because the truth is that nobody likes to be reminded to pay up debts. Remember that with the amount of emails most people receive each day there is a possibility that your invoice got lost in your customer’s invoice. In that case you can email them with a personal message with a link to their invoice so that they can have a look at it.

   Pesapal Invoicing tools have the ability to automate reminders for you, meaning for customers who are yet to settle the invoice, a personalised reminder is sent to prod the customer to pay for the invoice.

  1. Create Incentives and Penalties

          It is normal for human beings to seek motivation to do things. As a business person you can think of ways of rewarding people who make payments on time so as to motivate others to want to join the bandwagon. For example if you are buying tickets for an event at ticketsasa, you will be provided with options for early bird and advanced tickets that are usually much cheaper than paying at the gate.

          The flip side will be to charge penalties for past due invoices if they start affecting your cash flow. This could be done by

  1. Charge Interest on Late Payments

          It is important to give your clients some leeway after the expected due date is passed. In case a customer is late by one day it is not advisable to flood them with reminders. You should create policies that include the amount of time they are given past their due date, then once they have passed that time you are allowed to remind them.

         For example interest rates can be charged based on the amount of money the customer owes you. The larger the sum, the larger the interest rate you can charge due to increase in risks.

       In case you want to start sending invoices to your customers today, kindly contact us on [email protected] or if have challenges with creating your invoice on our platform, contact [email protected]  and they will be glad to be of assistance.

Published In: How To's
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