Are you tired of not getting paid on time? Is your cash flow being disrupted as the result of a slow invoicing process? Thousands of companies experience these issues on a daily basis; however, there are proven ways to accelerate the process. It only requires a little initiative and focus. Revisiting how your invoice process works will help you see where you can encourage customers to pay faster. In addition to the following tips, managing systems like GTG Technology Group’s Transportation Management System can help consolidate your business process and streamline shipment and payment. Here are our top six tips for accelerating the process and getting paid more efficiently:
- Bill as early as possible. Don’t wait until a project is completed to send a full invoice. Instead, perform payments in stages so your client pays incrementally. They may, for example, pay 50% by the time the project is half way done.
- Offer discounts for early payments. Provide an incentive for paying promptly, and consider cutting the cost by 5% for clients who pay within 10 days. Even a small discount can go a long way in motivating your customers to pay early.
- Send reminders. While your clients should understand and respect the payment process, we all lead busy business lives, and sometimes deadlines are forgotten. Send your customers a reminder their payment is due in the next 24 hours to encourage on-time payments.
- Require a deposit. For many businesses, it makes sense to require a deposit upfront. This helps ensure you hold up your end of the business deal, but it also means you begin a project with some form of payment, even if just a nominal amount.
- Charge a late fee. Consider instituting a fee for late payments. While many customers find a late payment charge upsetting, it will ultimately encourage on-time payment in the future.
- Require payments upfront. Depending on your business, it may make sense for your clients to pay in full before you begin a project or ship a product. While this may seem like it would scare off potential clients, it actually ensures you spend time working for clients who can financially commit to your services.
Use these tips to encourage on-time payments so your business can continue bringing customers what they need and you get paid. Another effective way to help the invoice process is to employ a management system designed to streamline your invoice and shipping process. GTG Technology Group provides invoicing features in their Transport Management System that can help keep your business moving. GTG Technology Group also offers a suite of software for brokerage operations that integrates all aspects of your business into one easy-to-use interface. Having access to every part of your business from order management to dispatch control helps keep everything on track for you and your customers. CarrierNet through GTG provides 24/7 access to order information, shipment status reports, invoice paperwork, and more to streamline carrier management. These features help our clients manage their shipments and make the payment process more efficient.