For most employees, getting paid is a monthly ritual, offering a certain amount of security that money will come in. For freelancers and business owners, it’s unfortunately not so simple. 

There will always be a small percentage of folks who intentionally try to avoid payment to cheat businesses and professionals who have provided them with a product or service in good faith; there are also clients who have good intentions but are dealing with an unforeseen crisis. 

Even so, unpaid freelancers can have difficulty surviving, and businesses can only succeed when clients respect their end of the bargain. There are several strategies that companies and individuals can use, including advance payments, friendly reminders, and filing a legal suit, to ensure payment.

Requesting a Payment

Many people naturally shy away from requesting payments due because they do not want to appear aggressive or rude. Money, especially when owed, can be a highly uncomfortable topic, but not paying your bills on time can be equally painful. So, often, asking for a payment due is unavoidable, no matter the discomfort. 

You can ensure you receive payment and maintain an excellent professional relationship with your clients in several ways, as follows:

Contracts Should Include Payment Terms

Contracts are an essential tool for businesses, professionals, and freelancers alike. You need a well-written, signed contract to have a leg to stand on legally. If you need to pursue a payment legally, yet you have no proof of your agreement, and it’s a ‘he said, she said’ dilemma, and if your client has ample resources in terms of legal representation and finances, your battle for payment may end up costing you more than the outstanding debt itself. 

Contracts should be detailed concerning payments and comprehensive payment terms, including milestones with dates, additional fees, late fees, and even restart fees. Never pay your employees or assistants with your money for a client’s project; your client should make regular milestone payments as the work progresses, so you won’t lose time and money if a client interrupts the project or payments. 

You want to avoid debt for someone else’s project; if the client returns later, charge a restart fee after the interruption. Make sure to include these terms in the contract. 

Consider adding a client billing information form to your contract so that you have the info from the start.

Ask for a Client’s Billing Information Early in the Project

If the client’s billing information is not included in the contract, ask for the proper billing info immediately and never assume who you should be billing. Often, intermediaries are used during contract negotiations or stipulations, and they are not responsible for payments. 

If you are working with a company, it most likely has a financial department or a specific employee that handles payments. Avoid making assumptions, and ask for this information early. Be sure to receive the proper billing info before you request payment; you may ask for an alternative billing contact, if necessary.

Offer a Discount for Upfront Payments

Offer a discount to encourage clients to pay in advance. Clients who are interested in getting a project completed will be delighted with the opportunity to receive a discount; you can also offer an extra service for free as an incentive to advance payment.

Confirm That Your Billing Invoice Has Been Received

Once you’ve sent a billing invoice, if you are still waiting for a response or alert that your invoice has been received or viewed, contact your client and ask if your invoice has been received. Should your client say they have yet to receive your bill, offer to resend it – and perhaps in a different format  – to be sure.

Offer Assistance

If your client says they have not received your invoice or indicates a problem with the sent invoice, offer your assistance. Offering help is a much softer approach than just demanding payment; perhaps they need another copy, an updated address, or your banking information to send the payment – they may also need a little more time to pay. 

Whatever the case, offering assistance is the first step to resolving potential issues before they become problems; it’s also a great way to build long-term relationships with clients.

Remind Clients That Payment Is Due

Businesses and people can and do innocently misplace invoices, or have so much work that they struggle to remember a payment is due. You can use an automated payment reminder system, but a personal reminder will contribute to building long-term relationships crucial to business and professional success. 

Avoid sending reminders to those clients who pay promptly, and focus on those who may need them. Courteous reminders can be sent several days before the payment is due or on the due date; consider the client, as some people may be offended by a sent reminder. In exceptional cases, take the time to make a personal phone call and inquire if there are any problems that you can assist with.

The Legal and Financial Consequences of Missed Payments Should Be Clear

All late payment fees and legal consequences should be clearly stated when signing a client contract; whether there are late fees, what the charges are, and if there are grace periods all need to be specified. 

It’s also essential that you follow through if you want to ensure payment; there’s no point in having rules if you don’t enforce them. Do consider any problems your client may be having and how much leeway you can afford, but reiterate that, despite any grace period you grant, there will eventually be consequences; stipulate a final deadline, and then follow through with the consequences.

Go to Court or Consider a Collection Agency

If you have signed a detailed contract with explicit payment terms, and your client does not respect them, take your client to court. Depending on the unpaid fees involved, you can file a claim in small claims court.

An alternative to initiating legal proceedings is hiring a collection agency; it will cost a percentage of the payment you are due, however, these agencies specialize in debt collection. When selecting a collection agency, choose one that is bonded and licensed.

Final Thoughts

One of the most potentially devastating effects of unpaid invoices for businesses and freelancers is how it affects cash flow. A lack of cash, in turn, can compromise business operations, and mean the difference between paying the rent and eating for many individuals. Unpaid invoices are a frustrating aspect of managing a business or an activity, but with proactive policies in place, you can reduce your risks

The post 8 Ways to Ensure You Get Paid After Every Project appeared first on Invoicebus Blog.

In today’s business world, companies need to stay up to date on the latest payment methods. That’s because the way customers pay for goods and services has changed dramatically in recent years. Plus, offering more payment options can increase customer satisfaction and help businesses grow.

No matter the industry, companies should be and always remain familiar with modern payment methods. So, to stay ahead of the curve, here are some modern payment methods all businesses should know about. Of course, this is by no means an exhaustive list, but it’s a good place to start.

Mobile Payments

Mobile payments refer to any type of payment that is made using a mobile device, such as a smartphone or tablet. This can usually be done in several ways, including using a mobile app, text message, or NFC (near-field communication) enabled device. Mobile payments are growing in popularity, especially among younger consumers, so companies need to be aware of this trend. Whenever possible, offer customers the option to pay using their mobile device.

When it comes to processing mobile payments, companies can either use their own internal system or outsource it to a third-party provider. Companies that choose the latter option will want to make sure they select a payment processor that is reliable and secure. Also, be sure to understand any fees associated with the payment processor you choose. That way, you’ll know exactly what you’re paying for.

Cryptocurrency

Cryptocurrency is a digital or virtual currency that uses cryptography for security. Cryptocurrencies are what is known as decentralized, which means they are not subject to government or financial institution control. Take Bitcoin as an example. Bitcoin is the first and perhaps the most famous cryptocurrency. It is common for people to buy Bitcoin to invest or use it as a payment method. While cryptocurrency is still in its early stages, it’s something you should consider carefully for the future.

Make sure you’re always up to date on the latest conversion rates. You can convert 1 BTC to USD at OKX, which will make things easier to understand. Proper conversion and consideration for this type of currency should allow you to make sound decisions when it comes time to accept cryptocurrency payments.

While cryptocurrencies like Bitcoin are still in their early days, it’s definitely something to keep an eye on as they become more popular and accepted. Of course, when accepting cryptocurrency, you will want to ensure that your system is secure and protected so that customers’ payments and details are safe.

Digital Wallets

A digital wallet is one way to store and manage your digital currency. There are now many different types of digital wallets, but they all have one thing in common: they allow you to store your digital currency securely and often provide a way to make payments using that currency.

If you’re thinking about accepting digital currency as payment, you’ll need to set up a digital wallet for your customers. Although some consumers still prefer to use traditional methods, like cash or credit cards, an increasing number are using digital wallets, so it’s something you should be prepared for should the demand arise. That means you’ll need to understand the different types of wallets available and how to set them up. You will also need to make sure you take all the necessary security precautions and ensure your customers’ data is safe.

Digital wallets are also convenient for customers, as they allow them to store multiple forms of payment in one place. Plus, depending on the wallet you choose, customers may be able to access special discounts and rewards. This can be a great incentive for customers, so it’s something to consider when choosing a digital wallet. Obviously, you’ll want to make sure the wallet you select is secure and reliable.

Contactless Payments

Contactless payments are a type of payment where customers can pay with a tap of their phone, card, or another device. This type of payment has become more popular in recent years due to the rise of mobile payment solutions.

Contactless payments have the added benefit of convenience and security, as customers don’t need to worry about entering their card details each time they make a purchase. Instead, their information is securely stored in their device. Contactless payments also help speed up the checkout process, as customers don’t have to wait for their cards to be processed.

In addition, customers can easily track their spending and keep a close eye on their bank balance. If you decide to accept contactless payments, make sure to research the different solutions available and pick one that is reliable and secure. You should also consider the fees associated with contactless payments, as they can be quite high. To save money, you might want to look into payment solutions that offer discounted or waived fees.

Overall, contactless payments are an increasingly popular choice for customers due to their convenience and ease of use. As such, you should consider adding contactless payments as a payment option at your business in order to offer customers more choice and convenience.

PayPal

PayPal is a popular online payment method that allows users to send and receive payments without sharing their financial information. It’s also been adapted for use with mobile devices, making it a convenient option when you’re on the go. Who’s to say in the future whether PayPal will replace more traditional methods, like credit cards? However, for the time being, it’s a safe and easy way for customers to pay. This is especially true for very small businesses, as PayPal is often the easiest way to accept online payments.

Naturally, the fees associated with this payment method can be quite high, so it’s important to consider your options and pick the right solution for you. The costs are generally worth it, however, as PayPal is a highly trusted and secure payment method. That being said, it’s always a good idea to research your options before deciding on the best payment solution for you.

Ultimately, PayPal is a great way for customers to pay and is a must for small businesses. Not only does it make checkout easier, but it also offers customers more security than other options. What’s more, they’re safe in the knowledge that their money is safe and will be refunded if anything goes wrong, which makes consumers prefer to buy from companies that offer this payment method. If PayPal isn’t an option for you, consider researching alternative payment options that offer similar features and benefits.

Apple Pay

Apple Pay is a mobile payment method that allows users to pay for items using their iPhone or iPad. It’s been gaining in popularity over the past few years and is now accepted by many businesses, both online and offline. This is to say, if you’re not already accepting Apple Pay as a payment method, you should consider doing so. That’s because, as more and more consumers adopt this technology, it’s likely to become the new norm.

Plus, Apple Pay is incredibly secure and reliable, so customers can rest assured their information is safe. Moreover, it’s super convenient as customers don’t have to enter their credit card information every time they make a purchase. So, if you’re looking for a secure and convenient payment method, consider adding Apple Pay to your payment options.

Conclusion

Today, customers have a variety of payment methods to choose from. From contactless payments to PayPal and Apple Pay, there’s no shortage of payment solutions that businesses should consider offering. By adding different payment methods to their arsenal, companies can provide customers with more choice and convenience. Ultimately, this leads to more satisfied customers and better business.

It’s important to research the various payment solutions available to determine which one is right for your business. That way, you can ensure that you’re offering the most secure, reliable, and convenient payment methods. By doing so, you’ll be able to provide customers with a better payment experience and improve your bottom line in the process. Good luck!

The post 6 Modern Payment Methods That Companies Should Know About appeared first on Invoicebus Blog.

The online business industry has never seen such a demand for payment systems like during the recent years. Every business owner who dealt offline take their business online in search of new customers. In the same time, newcomers are flocking the market trying to launch their online business.

eCommerce is not for everyone, yet the number of new commercial projects is rising, and new online stores are popping up like every day. While it’s important to work on your product marketing, it’s also crucial to ensure the consistency of your product. Only stores with the most intuitive interface will survive. People don’t like complications when they buy something.

Another strong customer demand is privacy. We all see how many problems caused the new GDPR guidelines for all the websites operating in EU. People started to care about their privacy more, and they want to know how a company deals with their sensitive data.

Why your business needs an in-house payment system

When you start a brand and launch your own eCommerce project, you’re building a track record of success. To deliver more sales and make your customers trust your brand, you need to prove that you care about their privacy.

The best way to avoid problems with third-party payment platforms is to develop your own in-house payment system and demonstrate that it is safe and transparent.

When people discover that their data is stored somewhere on a third-party server, they feel threatened.

Creating your own payment system is not easy, but it’s an investment in the safety of your customers and their loyalty. For example, you can implement new technologies and encryption methods like Telegram and other industry leaders. What are the options?

New technology to look up to

Blockchain currently dominates the field of transparent payments and data protection.

Blockchain ledger stores the whole transaction history and ensures that no third-party will be able to edit it. Once the transaction is finished, the details are permanently stored in the ledger.

More and more websites use blockchain for their payment systems to ensure the data protection and look more credible in the eyes of their prospective clients. But make no mistake, having your own payment system is not just about development.

What are the requirements?

To launch your own payment system, you’ll have to comply with some requirements.

First of all, your website will have to obtain the SSL certificate. The Secure Socket Layer technology is used by millions of websites and serve as a filtering shield. This is the first step towards the safety of the transactions you perform on your website. Then you’ll have to register your website with a digital authentication service.

Once you’ve obtained all the certificates, you’ll have to partner with the banks and open merchant account. Bank will provide you with the API to streamline the payments from users and validate them through the bank system.

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Successful examples on the market

Many websites choose to implement their own payment system to become independent from the third-party providers. Let’s have a look at successful examples!

• Amazon

The most obvious example is Amazon. They not only implemented their own payment system, but they’ve also launched a separate business out of it. Amazon pay offers you to use their services on your website and trust them your check-out process. This is a great example of how a small website module can become a new big project offering something truly valuable to other eCommerce projects.

• Rentberry

Real Estate industry is well-known for its traditional approach to every step of long-term renting. However, guys from Rentberry decided that they not only want to revolutionize the renting but also want to streamline payments. They utilized blockchain in their project and offer their customers secure transparent payments.

• Flipkart

Just like Amazon, they use their own in-house payment system. First, they developed one for themselves and then started to offer it as a separate service.

It is a great example of the in-house payment system that eventually became an additional source of income. The main idea here is to develop something new and truly secure.

Pros of having your own payment system

Of course, those who do not want to deal with the long-term development process can choose third-party alternatives. Your best options are:

• Stripe
• 2CheckOut
• PayPal

However, when we talk about having your own in-house payment system, it’s important to understand all the benefits.

• You’re independent
• You can establish your own fees for the transactions
• The sensitive data of your users are not going anywhere from your servers
• You can implement new technologies like blockchain for the transparency of transactions and make the crypto-payments available

Conclusion

Specific payment solution depends on the size of your business. Some small stores do not really need a whole new ecosystem. In this case, Stripe or PayPal along with a good invoicing system will suffice.

On the other hand, big brands and companies should care about being independent and have their own payment-handling system.

If you develop your own in-house payment system, you can play around with the functionalities, tweak something and create a unique billing experience for your team. They will be able to handle the orders faster and resolve the billing issues without the involvement of the Stripe or PayPal’s support.

So, when we talk about being independent, we literally mean it. You’ll never have to rely on the API of some other company, struggle with bugs in their code or explain their customer service department that you’re losing sales because they’re too slow in resolving the issues on their end.

Create your own payment system and streamline the payments on your website yourself.

The post How to Set Up A Reliable In-House Payment System appeared first on Invoicebus Blog.

Subscription-based businesses are experiencing a boom right now. Buyer preferences are gradually shifting towards subscription-based services and products, predominantly towards Software-as-a-Service (SaaS) and Platform-as-a-Service (PaaS). According to McKinsey, the subscription e-commerce market witnessed a growth of more than 100% from 2011 to 2016. This is welcome news for these service providers. At the same time, it highlights the importance of optimizing recurring billing systems to generate higher revenues from sales.

Machine learning is gaining prominence in the subscription-based business models. The integration o

Fretty Francis works as a Content Marketing Specialist at SoftwareSuggest, an online platform that recommends software solutions to businesses. Her areas of expertise include billing solutions, ecommerce platforms, and project management software. In her spare time, she likes to travel and catch up on the latest technologies.

f machine learning in recurring payment software resulted in higher sales, reduced payment failures, and enhanced customer experience. How is this possible with machine learning? The data scientists collect information pertaining to subscription sales, which is further analyzed to create systems and software working on the principle of artificial intelligence and machine learning.

One of the simplest applications of machine learning in recurring billing is auto debit of the subscription charge, at scheduled intervals, on a prescribed date and time. This ensures that the customer doesn’t default on the payments, and enjoys services without any disruptions. The recurring billing mechanism can further be optimized by deploying machine learning and artificial intelligence, ensuring an increase in the number of transactions. Let us analyze the prospects of machine learning in subscription billing mechanism.

Intelligent Retry Schedules

You must have subscribed to a media-streaming service or any other service that requires you to renew your subscription at periodic intervals. Generally, transactions happen seamlessly but sometimes, it might fail. If the transaction fails due to an action by the customer, it is known as voluntary churn. And if it fails due to unforeseen circumstances, without any involvement of the customer, it is known as an involuntary churn.

When the service cycle nears completion, the billing software generates an invoice, triggering a payment attempt using customer’s saved payment credentials. Now let us suppose that the transaction fails. The reasons may be a decline by the payment processor or the bank, insufficient balance in customer’s account, invalid card details, and so on. The system registers this error, and it retries to collect the payment. To accomplish this task, the system may send a reminder to the customer, update payment details and initiate a new request.

Present subscription billing systems initiate payment requests at multiple intervals, as predefined in the software algorithm. The timing of these attempts is termed as “retry schedule”. Again, the payment may succeed or fail, as there is no assurance that the payment will go through. If it succeeds, you retain a customer and your revenue collection doesn’t fall. But what happens when it fails? First, you lose a sale, thereby, impacting your revenues. Secondly, you ruin your relationship with the customer. The payment failure results in service interruption, against the wish of the customer. This will further affect your credibility.

To mitigate the issue of invoice failures, machine learning can be used to redesign the subscription billing model. A mechanism is devised to determine and evaluate transactions that are successful during the retry schedule. For this, you need a huge collection of data pertaining to all transactions happened over a period of time, whether successful or not. Once you have the data, you can analyze and determine the transactions that are most likely to succeed.

Another method is to train the predictive model using the available data. You create a predictive model, test it using variables, and after successful validation, integrate it into the billing system. To train the model, we assume one dependent variable and some independent variables. The effect of independent variables on the dependent variable is analyzed to determine the best course of action. For example, a dependent variable can be an online transaction. The independent variables can be transaction time, date, type of payment method, and so on.

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The predictive models attempt to collect payments at particular timings and under specific conditions, ensuring higher success rate. To further evaluate the performance of these models, a new stream of data is fed. If the predictive model analysis shows a green signal, the billing and accounting software can be integrated with a revamped retry schedule.

Machine learning is effective in detecting the fraud mechanisms as well. As per the Federal Trade Commission’s Consumer Sentinel Network Data Book, credit card fraud in the USA increased by 23% from 2013 to 2017. Machine learning can be deployed to foil any fraud attempts during an online transaction. Machine learning works on the big data related to transactions, analyzing all type of transactions. It analyzes the patterns followed during online payment frauds, thereby, taking a preventive course of action. When the subscription billing system is integrated with this model, the rate of fraud attempts reduces.

Curate Subscription Packages

Do you offer multiple services under your brand name? You cannot club them all and offer a single package as it will be too expensive for the buyers to purchase. Moreover, your services may not reach the target audience, resulting in the failure of your marketing strategy. Machine learning assists you in solving this issue. Based on the browsing and purchasing trends of customers, it identifies the key areas having a growth potential.

You can curate packages according to the requirements of the visitors. If you notice that some of your services are performing better than others, you can create a subscription package of high-performing services. This will increase your sales, increase customer acquisition rate, and generate higher revenue.

Set an Optimum Price

Machine learning can assist you in setting up appropriate prices for your products and services. This is crucial for subscription billing services as you can reap maximum benefits by targeting a specific audience. The initial step is setting up an optimum price of a product or service. How do you determine the subscription price? You have to analyze three parameters – market demand, market saturation, and buyer persona. Now you can apply artificial intelligence and machine learning to explore these aspects and establish a correlation. This will assist you in setting up a price that will rake in maximum customers.

Another factor that influences subscription billing is price localization. When implementing price localization, you can expect a rise of 30% in sales performance. Machine learning is applicable in price localization as you need to analyze the purchasing power of the local currency. It becomes crucial to determine the purchasing power as it directly influences the customer’s willingness to buy a product or service.

Since subscribing to a service is a recurring expenditure, a customer considers various factors before finalizing a decision. These factors include the buyer’s income, expenditure, lifestyle, preferences, and so on. The data analytics wing can extract datasets pertaining to these factors. Once you have the data, you can apply artificial intelligence and machine learning to create value for your customers. The value would be in terms of product or service features and competitive pricing policy.

Conclusion

When you streamline the subscription billing system using machine learning, reducing the invoice failure rate in the process, you ensure a seamless user experience. You don’t have to ask customers to update their billing information or resolve a payment issue. Therefore, you keep the customers out of any problem arising due to involuntary churning. Your customers will enjoy personalized & uninterrupted services, and you will receive your payments before the due date.

The post Using Machine Learning to Optimize Subscription Billing appeared first on Invoicebus Blog.

Debt collection and billing are two things that startups don’t want to deal with. However, you started a business because you want to make money. If your customers are not paying on time, then you have a serious problem. If they’re not paying at all, the problem even gets worse.

For long-term success, startups must have an efficient debt collection and billing process. Proper management of accounts receivable should be a priority to ensure good cash flow. Debts have to be handled intelligently. What follows are some tips that entrepreneurs need to know about collecting debts and billing their clients.

#1 Speed Up the Invoicing Process

Startups should expedite their billing process. Instead of using snail mail, consider using email. Customers will receive their invoices instantly, instead of waiting for a physical delivery. By speeding up the process, you improve the company’s receipt of payments and prevent issues that include late mail delivery due to Sundays and holidays.

If you opt for an email delivery system, make sure that you have your clients’ up-to-date email addresses. Otherwise, your customers might not receive their invoices.

Apart from email, other ways of speeding up the invoicing process include using in-app notifications and text messages. These are also instant and can speed up the payment process. If you’re using in-app notifications, remember to add PAY NOW buttons so that people can easily make card payments.

#2 Use a Credit Application

Startups want to have new customers. However, most of them fail to vet potential customers’ reputation and credit-worthiness. As much as having a new customer is good for the business, chasing after bad accounts will waste your company’s energy and time. These assets are one thing startups can’t afford to lose.

If the startup extends credit to clients, it must also make sure that each account completes an application that contains data such as years in business, bank information, and credit references.

Depending on the amount of credit extended, it may be worthwhile to consider having a third party service that vets the credibility of the potential customers. This shields the startup from struggling with too many bad debts.

#3 Do Credit Checks

Before you do anything, though, you should first conduct a credit investigation. You are going to use your company’s money to provide financing for a sale or service, which gives you the right to decline credit that you find unacceptable.

Make sure your credit checks are more thorough where you’re extending huge debts. Or when it’s a small debt that needs to be given to a huge number of people. Manage the debts carefully and never hesitate to say no to those who don’t meet your standards.

#4 Set Clear Terms of Payments

Startups should have clear terms of payment for all customers. Clients need to agree to the terms before a sale or service is rendered. That way they know exactly the deadline for payment. Make sure the client understands the terms of payment and signs a contract to abide by the expressed terms.

Give clients a conservative billing period; make sure to avoid long billing terms that will make it more difficult for you to track when the bills are due. You should also consider requiring down payments on services to help offset the expenses incurred during the billing period.

Depending on your industry, you can consider taking upfront payments for your services to avoid debt altogether. For example, Airbnb takes payments from short-term customers before they get access to their services. Upfront payments bring the chances of getting bad debts down to zero.

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#5 Modify Billing Cycle

You should send out invoices as soon as you complete the project, instead of waiting for the end of the month to issue them. That way you can collect what you are owed faster and improve your cash flow. It is also easier to collect when the client remembers the sale or services rendered to them.

#6 Provide Various Payment Options

It is easier for clients to pay your company if you provide them with different options for paying the bill. These include cash, check, credit card, and online fund transfer. Taking this step can help reduce the time it takes between the completion of the sales and the payment transaction.

Accepting credit card payments will give your customer the ability to pay their bill immediately. Keep in mind, however, that part of the transaction goes to the credit card company if you use this option. You should first decide if your startup can handle the additional expense before using this payment method.

You can also provide loans to clients through a third-party creditor. By doing so, the installment loan provider will be the one to determine if the potential client is qualified for the loan or not.

Note that when it comes to giving multiple options, you shouldn’t give too many options. Look into the options available and choose two to four options that are most convenient for you.

#7 Develop a Good Business Relationship with Clients

Satisfied clients can develop into repeat and long-term customers. They can help your company grow while also improving your cash flow. You should prioritize the customer experiences that will convert clients into brand advocates. It is important to deliver your obligations to them in a timely and effective manner.

#8 Send Out Reminders for Late Payments

Late payments cripple businesses. Technology improved enormously in recent years, and accounting systems can now automatically send out reminders to customers who fail to pay their bills on time. If a customer doesn’t respond to the automated message, send a 10-day demand letter through a registered mail.

The formality of the demand letter will show to the client that you are serious about the unpaid bill. Customers also need to sign for the letter when they receive it, which gives you the proof you need if they dispute the charges. Make sure that you state your course of action in the letter in case the client fails to pay after receiving it.

#9 Outsource Payment Management

If you are the only person running your accounting department, then it is best to consider hiring an accounting company to manage your accounts receivable. That way, you can focus on sales, marketing, and customer service. An accountant will handle receivables in a professional manner.

#10 Employ a Debt Collection Agency

Some startups hire a collection agency to go after clients with overdue accounts. However, you should do this only as a last resort.

Employing the services of a debt collection agency is expensive, especially if the dispute ends in litigation. You will lose a client as well. Before you hire an agency make one last payment appeal. However, a collection agency does allow you to be free from the stress of pursuing payment from the client, saving you time and allowing you to focus on the core operations of the business.

Startups require a positive cash flow to ensure a steady rate of growth. By improving your debt collection and billing processes, you are maximizing your cash flow, one of the most important aspects of a startup.

Conclusion

To sum it up, you can manage billing and debt collection in multiple ways. Speed up the invoicing process so that your payments get in real quick. Use a credit application and ensure you do credit checks to protect your business.

Be very clear on your terms of payment. Ensure you have an optimal billing cycle. Give people multiple payment options. Always maintain a great relationship with your clients. Send out late payment reminders. As you grow, outsource payment management and employ a collection agency.

These tips will help you have the optimum cash flow to grow your startup and take it to the next level.

The post Tips to Help Startups Manage Billing and Debt Collection appeared first on Invoicebus Blog.

Dunning. Mention that word to anyone who owns the money, and you’ll give them the chills. Mention it to any business owner, and you’ll give them the chills.

According to the most common definition, dunning is a process of “making insistent demands for the payment of a debt.”

For an individual or a business that owns the money, it means being prosecuted by a business to pay a debt. For a business, it means hiring people or third parties with the purpose to collect the money it has the right to.

When dunning originated as a concept in the 17th century, it looked much different than it looks today. Back then, it was based on threats. Today, it is based on communication and gentle reminders that don’t have to progress to lawsuits. The most important thing to remember is that you have no right to harass or threaten anyone. You must make this experience as stress-free as possible for the people who owe you money.

A great company doesn’t stop there. It turns the process of dunning into a positive customer experience!

How is that possible, I hear you ask? First of all, let’s see why the process of dunning is so problematic. Then, we’ll go through some tips that will help you turn it into a positive experience for your customers.

Why Is Dunning Such a Big Issue?

It’s mostly because of the misunderstanding that occurs. When done the wrong way, dunning is a bad experience for both parties.

The business owner is convinced that the customer doesn’t want to pay and keeps avoiding the due invoice under any and all circumstances. The customer faces financial issues and feels pressured to pay. They believe that the business is greedy, has a rude approach, and is only after their money.

The positive outcome would be much different than that. The business owner would understand the customer’s financial issues and would help them pay the debt in the most painless manner. The customer, on the other hand, would understand their responsibility to cover the debt and would be open to a discussion towards a solution that both parties would benefit from.

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How to Make Dunning Less of an Issue for Both Parties

1. Understand Your Debtor and Their Trouble

Some people don’t want to pay. They want to use the most they can from a business and benefit from it without taking any responsibility on their part. Yes; such customers do exist. The problem, however, is when you fit all debtors in that category. That pushes you towards a negative attitude, so you turn into a cold debt collector as soon as you realize that a customer is late with a payment.

Gary Smith, a financial advisor for ResumesPlanet, has one an important advice for all business owners:

Think twice before sending a cold email with the purpose to collect a debt. In the most common situations, people who owe money don’t even realize that their payment failed. They just need the information, and they will cover the payment ASAP. Others are in serious financial trouble. They want to pay; they just need some empathy and understanding. Together, you can work towards a solution.

First and foremost, you mustn’t assume that the customer is doing this on purpose. There are many reasons why you’re not getting paid, and they are not always tragic:

• Their card expired and they didn’t realize;
• There were issues with a payment gate;
• They forgot to update the CC info when they changed the card;
• The card lacked sufficient funds to cover the payment.

If the reason for a missed payment was any of the ones mentioned above, then your cold email will cost you a customer. They will never return to your business after making this payment. They will consider you’re harsh and money-oriented, and they will have every right to know that.

Try to understand why people miss payments. Some of them are not aware of that fact, and others have their reasons. In each case, you’re dealing with customers; not criminals.

2. Write a Proper Email

Let’s just quote Dale Carnegie, as the greatest authority in corporate training:

There are four ways, and only four ways, in which we have contact with the world. We are evaluated and classified by these four contacts: what we do, how we look, what we say, and how we say it.

What he was trying to say is that everything you do sends people a message. What you do, how you look, what you say, and how you say it determines the impressions people have about your business. If those impressions are negative, they will spread them around. A single email that lacks proper etiquette can be very damaging to your business.

Don’t worry; it’s not that hard to write a nice email message, even when you’re asking someone to pay you money. Just remember: you’re not requiring; you’re reminding!

• Clarify who you are and what purchase you’re referring to;
• State the amount of money that the customer owes, as well as the due date that was missed;
• Suggest a next payment attempt without any additional charges;
• Provide a link to payment options or invoice;
• List your contact information and invite the customer to ask any questions.

The email

Let’s try to formulate a nice email together, shall we?

This seems like a nice email, doesn’t it? You’re not assuming that the customer tried to trick you. You simply assume there’s a problem with their payment information and you’re offering a quick fix. If they ignore you, you’ll send another email. You’ll explain that you’ll make two more attempts to charge with the current payment information. You’ll provide the dates of those attempts. Last by not least, you’ll also include a kind reminder that if those attempts don’t work, their subscription will end.

If it’s not about a subscription and they already got a product or service they have to pay for, you’ll remind them that missing the payment will lead to legal procedures with extra costs involved.

3. Keep It Simple, Short, and Clear

Explaining what benefits the customer got from your product or service and shaming them for not paying does not work.

Fortunately, no business writes emails like that, but do take that example seriously. Many business owners try to be unique and funny when they start the dunning process, but that approach never works. Just be simple and straightforward! Explain what the issue is and how the customer can solve it.

Yes; it’s okay to remind the customer about the benefits they are getting from your business, but don’t turn it into an essay. Remember: this person is still paying for it, so you’re getting benefits from them as well.

Conclusion

No one likes requesting payments. When you take a positive approach towards dunning, however, you may show yourself as a graceful and patient business owner. Just be as nice as possible and keep in mind that you don’t want to lose the customer. You just want to help them solve a payment issue.

The post How to Turn Dunning Process into a Positive Customer Experience appeared first on Invoicebus Blog.

Even though the point of business is the bottom line, the stipulations and the restrictions placed on reaching the bottom line can be ridiculously time-consuming and tedious. You, a business or finance professional, may be at your wit’s end with it. Be assured, however, that it’s completely understandable to be tired, concerned or worried. The entire thing can be complicated and infuriating. Furthermore, major mistakes in the billing process can lead to legal issues that many small businesses are unable to handle properly.

If you find yourself pulling your hair out, staring at the clock, or nodding off to sleep because you’re worried about how you’re getting paid and how you’re paying others, you’re not alone at all. Thankfully, with modern technology, you may be able to reduce some of that stress.

It’s clear that invoicing will become more commonly an online process in the future, and it looks like the progressive attitudes steering this are putting us in good hands. Using what platform developers offer us, we should be able to soon streamline billing and payroll processes. And by doing so, you can get all transactions completed more quickly and efficiently. So how would one go about doing this? What steps does one take to streamline their billing process in 2018?

Choosing the Right Tools

Obviously, the right equipment is mandatory for the best invoicing process. Invoice software can be a very tricky thing to choose. Because you have to properly record every transaction, and as technology changes, not all software adapts. If you ever reach a point of serving 50, 100, or even more clients, you’ll be strapped for time. And efficiency will be challenged if you try to do all of your invoices single-handedly. Yes, software and machines make mistakes, but they don’t get fatigued and tired the way humans do. Especially humans that have multiple tasks to perform.

Have Good UX and Show All Details

MileIQ, a millage reporting service, recently wrote a piece regarding what to look for in an invoicing software, and it checks out well. One of the most important things they mention is good UX or user experience. This means that whatever invoice and billing software you choose needs to be easy to use. However, it also needs to be efficient and work well. It must cover all of the details needed to properly create and send an invoice! At the bare minimum, they write, a good invoicing software needs the following:

• Payee contact information
• Payer contact information
• Project details
• Payment amount due
• Invoice date
• Payment deadline
• Late payment terms

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New Technologies

Back to the technical side of things, some of the new advancements making its way into financial software are likely to be utilized by billing companies more in the near future. For instance, blockchain technology — the structures used in bitcoin and other digital and cryptocurrencies — is making its way into the invoicing world slowly but surely (its main appeal is its immutable record-keeping skills). Technology like this is always being created and innovated on to make mundane tasks easier, more productive, and more efficiently taken care of, and in doing so will be adapted to a diverse range of practices.

If you’re missing any of the things listed by MileIQ in your software, you’re most likely having to do a lot of extra work that a different software could take care of. So the moral of this story is to make sure you have your bases covered before you invest in something that will cost you more time.

Building a Process to Streamline Your Billing Process

You and all of those involved in the financial side of things will have to be familiar with the software being used in order to put these invoices together. With any kind of project management software, it can be difficult to get everyone on board with the proper operations and practices.

This means, if you have people helping you or employees, you’ll need two kinds of processes: a teaching process and a procedure process. You can’t teach a complicated system to somebody all at once. Especially when they have a plethora of other responsibilities to attend to. So you need a process in helping your employees become acquainted with such a thing. Sometimes companies make moves toward more “efficient” means of doing things. But they slow things down too much to be worth it. So make sure that your process accounts for work done as much as thorough reporting.

Maybe have workshops once a week for a while to cover, or dedicate a couple days to teach and incorporate the new programs into your practices if you can do so without halting production. Most likely you’ll be switching from one procedure to another, so ease your employees into it.

That said, you may also want to consider combining the billing process with other tasks if you’re able. While you don’t want any software and procedure changes to get in the way of new work, you also may be able to fix any time constraints with multitasking. Organization of tasks in this way can be good for keeping up a productive rhythm through the day — some people do not work well with distractions or breaks!

Setting Up Precautions

Setting up security precautions for yourself is absolutely mandatory while doing invoicing and billing, even with software. The problem is that, even though all of these programs use algorithms that are hopefully as precise and correct as possible, you still have to deal with things that can change in odd cases or bugs that have popped up in the software.

Habitual Learning

If you’re an entrepreneur, you know this especially well. One of the biggest obstacles and assets you can have in bookkeeping for your own company is habitual learning. The downside of this is bad habits.  If you get used to doing the wrong practices, then forming better habits will be hard. However, if you start by teaching yourself the right way to do things, then habitually you’ll continue to do things correctly. And eventually, you’ll become faster and more efficient in doing so.

Keep Accurate Backups

This calls for specific precautions, starting with backups and records of every transaction you’ve completed. To ensure all procedures are followed correctly, you need to ensure all of your information and records are accurate. Any work that’s been done by you that you agreed to be paid for needs to be handled in a timely manner. And also should be effectively handled so it can meet all tax deadlines. To make sure your records are as accurate as possible and so the IRS has nothing against you, there is no shame in chasing overdue invoices.

Double-check Everything

If you have another program that can double-check your invoices to make sure the same numbers come out, that would be ideal as well. Or make sure that those you are invoicing are in agreement over the amount. This will mean having contracts or proof of the original agreement with you at all times. Pictures, emails, etc. should all be saved and backed up on your server. You don’t want to catch yourself in the middle of an invoice fraud case.

Conclusion

Modern technology is certainly saving the day when it comes to time spent doing your billing process. These are just a few suggestions on how to streamline such things. What have you done to make it easier on yourself? Share your knowledge and experiences in the comments and replies below!

The post Ways to Streamline Your Company’s Billing Process appeared first on Invoicebus Blog.

Sellers and buyers have always had some special rules pertaining to the products sold and bought. One of the crucial features of a long-term, trust-infused relationship between these two parties is the money back guarantee. In a nutshell, if a buyer isn’t satisfied with the purchased product or the item in question doesn’t work properly, they have the right to be refunded.

The arrival of software trade has shaken the grounds of the area that has worked the same way for centuries. Software vendors should follow some traditional rules, as well as some new practices in order to provide a buyer-friendly money back guarantee. Here are some tips that will help you make the most of your online software commerce.

1) Full or partial money back guarantee?

A new software-selling business can use different strategies to generate leads and increase their sales. Offering a full money-back guarantee is one of the ways to nudge your leads to make a purchase on your website.

When a potential buyer comes across a new software brand that seems practical, they don’t know anything about it. That’s why the owner of the brand needs to make an effort to offer their services at affordable conditions.

This is where full money back guarantee comes on stage. Knowing that they can stop using your software tool if it doesn’t meet their needs and get their money back will convince the potential buyers to make a purchase.

As opposed to that, a partial money back guarantee might sound trustworthy enough for new customers. Because of that, it’s wiser for new software vendors to opt for a full money back guarantee, with a number of specific conditions.

2) Special conditions and trial periods

The money-back guarantee is a borderline case between marketing and financing.

It can be grouped together with other marketing features because it is one of the factors that contribute to the popularity of your brand.

On the other hand, it’s a financial category, as well, since it affects your cash flow.

This is why you should set some clear rules that will unambiguously define when a software buyer is eligible for a money back guarantee.

First and foremost, you need to prevent dishonest money-back requests. Naturally, every software solution becomes a bit obsolete after a while. This is where your duty is to keep coming up with regular updates and ensure that your customers are satisfied with the relevance of your software product.

What might happen is that a customer asks for a refund once they think your product becomes outdated.

This is why you need to highlight the conditions under you’ll return the money to the buyer. The smartest thing to do here is to set a time limit and clearly stress that out on your website.

Also, trial periods are a great way for both the seller and the buyer. The former will get a chance to showcase all the pros of their products. The latter will have an opportunity to check out whether the product and its features meet their needs.

The trial period will completely depend on your preferences. Still, if you’re a new business that needs customers, offering a 30-day trial period is a bit more persuasive than a 14-day trial.

During that time, your customer service has to be engaged 24/7 to make sure every single bug and breakdown are sorted out in no time.

And if a customer still decides to enter the refund procedure, don’t make a big deal out of it and show them that your money-back guarantee really works in practice. You might lose a customer or two, but you’ll keep a good reputation.

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3) Offering free and premium versions

In addition to the trial version during which you allow your buyers to get a full refund, you should consider introducing free and premium versions of the same software product.

Let’s say that you’re developing a time-management app for businesspeople. After you’ve put the app through different stages of testing and allowed users to try it for free, it’s time to spice things up and start making money from the app.

What you can do here is offer some basic features for free and charge the additional pack of services. If the buyer likes what they see in the free version, they might go for the entire package.

If they don’t like the free features, they won’t buy the rest of your app.

You can apply the same principle to every single bit of software you sell, so as to reduce the hassle of having too many money back guarantee requests.

4) Refunding after the money back guarantee period

What if a customer buys your product, keeps using it and then suddenly realize that they aren’t satisfied with it? This is something we all hope won’t happen, but we also need to have a ready-made strategy for such a situation.

In that case, you can do your best to resolve any issues the client might have with the software. For instance, offer to fix their bugs for free. Outsource additional staff or pay overtime to your in-house workers if necessary.

The buyer will see that you really care about them and their problem, which is already a great way to keep them a loyal customer. To cut a long story short, do everything you can in order to update/fix the software and leave a positive impression on that customer.

Finally, if nothing works, you can direct the buyer to read the terms and conditions and inform them that the money-back guarantee has expired. Still, that might backfire on your business as a bad reputation. Even though you might be legally right, there’s the marketing aspect of your relationship with customers. That’s why you should approach each of these cases individually and make your final decision on the spot.

Conclusion

As a non-tangible form of commerce, software tools can be a bit tricky when it comes to money back guarantee rules and refunds. Sellers should bring their own rules here, but within the legal frame, they’re obliged to follow. A business beginner might sometimes go an extra mile and make a refund that they’re not legally obliged to if they want to keep a good reputation. Hopefully, you won’t have to deal with such issues too often if you set and highlight the terms of conditions under which your customers are buying your software. Such an approach will ensure a high level of customer satisfaction and a low number of untimely refund requests.

The post How to Find an Optimal Money Back Guarantee Policy in Software Industry appeared first on Invoicebus Blog.

In this digital era, online payment methods are hugely popular around the world, threatening to dethrone cash. But before discussing why online invoice payments are the future of invoicing, let’s see why they are so popular. Essentially, every smart business owner knows that accepting online payments is highly beneficial for the business – it increases the number of potential customers thus increasing sales. Several factors make online payments convenient for businesses, and here are some of them.

• Labor costs are lower
• Transaction speed is faster
• Recurring payments are simplified
• The risk of theft is lower
• Customers can pay in any currency

Online payment is beneficial for both the supplier and the customer.

Moving from traditional to online invoicing

Invoices are crucial for any business. An invoice is one of the most important business documents. Without them, businesses cannot collect money for their products or services. Consequently, they cannot pay their expenses. Invoicing also facilitates tracking and managing invoice payments and serves as evidence in taxation matters. Customers and suppliers exchange millions of invoices per year. Many businesses still do it the traditional way, by printing the invoice and mailing it to the customer. However, online invoicing (e-invoicing), or exchanging invoice documents in an electronic format, is much more efficient than creating paper-based invoices.

Shifting away from paper to online based formats usually happens gradually. The pace depends on the industry and country. Besides, moving completely to electronic invoicing is still hard. While most large organizations have already adopted some kind of electronic solution, small and mid-sized companies are still reluctant to change the old habits. Here are a few reasons why all businesses should move from paper-based to electronic invoicing.

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The benefits of online invoicing

It is helpful for the business

If you want your business to succeed, you need to be competitive. Keeping up with the latest trends and the digitization of business procedures is one way to do it. It is proven that switching to online invoicing improves timeliness, safety, quality and efficiency of document processing, which contributes to partner and customer satisfaction. Only satisfied partners and customers will do business with you again and refer you to others.

Minimizing your costs is key to increasing profits, and e-invoicing can definitely help you minimize your costs. Usually, this is the main reason for choosing electronic invoicing rather than paper-based. Invoice processing is faster, paper, ink, and transportation costs are eliminated, which results in significant cost savings. Reducing the possibility of human errors is one of its main perks since they cause financial losses and damage the relationship with the client, which leads to more losses.

You can manage and send invoices yourself, anywhere, 24/7, without accountants or bookkeepers. Also, recurring invoices can be sent automatically by your online invoicing software at chosen times and dates. Invoices arrive in just a couple of seconds, which means no more waiting for them to arrive, or worrying that they won’t arrive at all. This way, not only is the invoice sent automatically, but it’s also possible to know when it is opened by the recipient. Tracking is automatic, thus you can have a better insight on your payment status. Furthermore, customers will feel safe and protected, since reputable e-invoicing software adheres to strict security standards. And the security of financial data will only improve in the future.

Future is in the online invoice payments

Simplifying the paying process for the customers’ convenience is one of the biggest advantages of e-invoicing. Online payment services enable your customers to pay immediately from within the invoice. Instant delivery means faster payment. A cloud-based invoicing service, such as Invoicebus, helps customers pay for your goods and services instantly and safely.

This form of payments goes beyond country borders since customers can choose any currency or language they want. As payment barriers are removed, entering the global marketplace has never been easier. The future of invoicing is in facilitating online payments around the world.

As you know, businesses are required to pay deposit and transaction fees for payment processing. By opting for e-invoicing you can select the fastest payment option with the best transaction rates.

It is also good for the environment

Not only does e-invoicing improve your business operations, but it also reduces the carbon footprint. Eliminating paper from offices is the ultimate future goal. Your e-invoices are sent, archived, indexed and stored electronically – there’s basically no need to print them out. Hence, no more paperwork taking up expensive office space, you are able to locate every document more quickly, and most importantly, you are saving trees and reducing pollution.

It may be a requirement

Both private and public sector are turning to online invoicing. In order to reduce their own costs, they might require their business partners to submit invoices in electronic format only. Therefore, you might be pressured to accept this growing trend.

What invoicing does for your business – example

Let’s say your company is a moving company. Business development for moving companies should be taken very seriously. Payment is the last and most important step towards successfully completing a collaboration. Once you’ve done your job, you want to get paid. The moving company invoice you send contains the list of provided services and sold products, along with their prices. All the prices should be added, and then the taxes should be applied to the total price. The invoice should also include your company’s name, contact information, as well as the client’s information. Payment instructions and expected timeline should be mentioned, too.

The total price should not come as a surprise if the client has used instant moving quote calculator to calculate the approximate moving costs in advance. There are also the binding and non-binding estimates, informing the client about the costs of moving. After opening your professional looking e-invoice, the client will be able to pay you with just a few clicks. This way you have a record of the payment and the service. It will come in handy at the end of the year when filing your taxes and creating a profit and loss statement.

Conclusion

All things considered, online invoice payments are definitely the future. In the future, it will be difficult for small and medium-sized companies not to adopt online invoicing, as governments and large enterprises continue to push. Paper-based business processes and traditional payment methods will eventually be abandoned. Invoice technology will keep advancing, making online payments even more secure and efficient, which is something all businesses strive for.

The post Why Online Invoice Payments are the Future appeared first on Invoicebus Blog.

Running a small business or pursuing a freelancer career both rely on regular payments by clients and other business entities. If they don’t pay you on time, they’re exposing you to the risk of unsteady cash flow and financial instability.

The report on poor payment practices published in 2016 by the UK Federation of Small Businesses showed that 37% of SMBs had cash issues because of untimely payments.

In order not to get on the receiving end of this trend, you can take the following measures to get paid on time for your work.

1) Ensuring advance payments

Trust is extremely important in the business world. That’s why you should always ask for advance payments when you’re collaborating with a client for the first time. Only when they prove that they’re reliable business partners who don’t postpone their financial obligations should you loosen up a bit.

The amount you’re going to demand to be paid in advance will depend on the size of the project.  On the one hand, you shouldn’t overdo when asking for an upfront payment. On the other, this advance payment also needs to ensure that the client will approach that project in a serious manner.

For all these reasons, a down payment of some 15%-20% sounds reasonable.

Also, this amount of money should be paid to your account sometime before the project kicks off. Again, this timing will depend on your preferences. For instance, for larger projects that demand a lot of preparatory work, this advance payment should be made even months in advance.

As opposed to that, fees for smaller projects could be covered a few days in advance.

2) Keep everything in writing

As we’ve already stressed out, establishing a trustworthy relationship with a client is a great thing for business. But until you reach that stage, you should pay attention to every single detail regarding your freelance work. And the best way to put all the details under control is to keep everything in writing.

First and foremost, you need to make a contract with every new potential client. There’s no room for a laidback approach in freelancing work. You can never tell if a client is going to pay for your work. Even if you work with honest people, they can get in financial difficulties and fail to pay you.

When you sign a contract with your client, you’re legally protected and you can fight for your rights in court. Since making a new contract on your own is time-consuming, you can check out these contract templates for freelancers.

Moreover, if you work via any of the freelance platforms, you can use their contracts and project forms. For instance, Upwork has some practical forms and milestones for fixed-price projects that protect both clients and freelancers.

When it comes to written documents in freelancing, you should also issue clear and timely invoices. Keeping them in order will help you properly track your due payments and predict any potential payment issues. As a result, you’ll be able to run your finances in an organized way.

3) Work only when you get paid

One of the most common mistakes freelancers do is start working without getting paid. Of course, it’s not realistic to expect from a client to pay the entire sum before the project begins. However, they need to make the aforementioned advance payment and set the milestones.

When these two details have been arranged, you can start with your work.

The same pattern should be applied in every single stage of every project you take. By doing so, you’ll protect your freelance existence and ensure proper financial planning. But there’s another important goal you’ll reach with such an assertive attitude: you’ll demonstrate to your clients that you’re a committed professional who shows appreciation to clients and deserves their respect.

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4) Anticipate the potential issues

Speaking of freelance platforms, it’s important to mention one big advantage that they bring: you can see the client’s history. Taking a look at their previous projects, the feedback they’ve received and the amount of money they’ve already spent will help you form an image of the client. If you happen to apply for a project offered by an unreliable client, you’d better skip that collaboration.

Apart from that, sometimes freelancers don’t know how to build a firewall from nit-picking clients who would like to make dozens of changes on the project. Since every change you make will cost you in time and resources, it’s crucial for you to limit the number of changes in advance. Also, define how much you’ll charge for each change beyond that pre-agreed number.

Further, you can help yourself a lot if you create an emergency fund and save assets for your business. While this might sound too optimistic for a new freelancer, you don’t have to aim at large figures. Any part of your income that you manage to put aside is welcome. As time goes by and cash comes in, you should be able to make savings that would cover your six-month business expenses. When you reach that goal, you’ll keep your freelance business intact when the payment tide is low.

5) React at once to non-payers

In order to get paid on time, stick to a 15-day payment period. As a matter of fact, setting even a shorter period of time for your clients to make their payments won’t be wrong.

New freelancers often accept any type of work, just to make some money and get things started. This way of thinking should be abandoned at once because you’re not a charity organization, but a business professional who makes for a living through freelance work.

Because of that, it’s extremely important to react at once to non-payers. Even if your client has made an advance payment or activated milestone payments, but stopped paying at one moment, you shouldn’t proceed with your work.

This is the right time to activate some steps against late payers. First, you should send them a reminder note and set the new payment deadline. If that doesn’t work, send out another reminder, but this time including the actions you’re going to take in case they don’t pay you. What you can also do here is contact a debt-collecting agency, just to keep that option on the table. If nothing else works, give the debt collectors the green light to collect your debt from non-paying clients.

Conclusion

Getting paid on time is the pillar of your freelance work. By postponing or avoiding their financial obligations, your clients are putting your entire business effort in danger. You’ll be able neither to concentrate on other projects nor pay your bills until you get paid for your work.

Only a paid freelancer is a happy freelancer and you should always bear that in mind. If you don’t respect and protect yourself and your income, nobody else will.

The post How Can Freelancers Get Paid without Delays appeared first on Invoicebus Blog.