How to speed up payments: 20 tips to get clients to pay their bills and invoices faster

One of the most awkward and uncomfortable situations in business is having to remind clients about late payments on a bill or invoice. Even harder is trying to respectfully request immediate payment without the conflict associated with adding late charges or delaying work submission.

But past due or stale invoices can cause your cash flow to slow to a trickle. Late customer payments are the source of cash flow problems for most small business owners, according to QuickBooks data, and many say it takes more than 30 days to get paid. These cash flow challenges can impact your ability to pay vendors and suppliers, disrupting your business and risking crucial vendor relationships.

To avoid the conflict and get paid faster, here are 5 steps to successful billing and 20 tips that are designed to get clients to pay their bills by the due date or earlier.

Create a solid contract

Creating a contract with clear payment terms is the first step toward ensuring your payments come when you expect them. Your contract should outline the most important details of your transaction and each party should consent to the terms of the agreement before work begins. On its own, an invoice is not a legally binding document, but a contract can protect you from potential invoice disputes.

Here are a couple of tips to help you build a solid foundation for quick payments at the contract stage.

1. Negotiate clear payment terms upfront

It’s essential to have a written agreement between you and the client that clearly outlines payment terms, deadlines, fees, and other essentials. This allows you and the client to get in sync regarding your payment policy, including when invoices are sent and how long they have to pay the amount due. You can emphasize these payment terms on each invoice, such as “due upon receipt” or “net 30” payment terms.

2. Request an upfront payment or deposit

This is probably best suited for larger projects, but an agreement to pay half the bill at the onset of the project and the other half after completion is a sign of good faith and an indication that you’ll likely get paid at the end of a job. Progress payments will not only help by improving cash flow, but can also help set expectations with your clients to make payments prior to project completion.

Make payments easy

Reduce work for your clients by offering a wide range of payment options. The easier it is for them to pay their bill, the less likely it is that you’ll find yourself chasing a late payment. There are a few ways you can make payments easy:

3. Be flexible with payment type

While some clients want to pay by check, credit card, or online payment system, others prefer direct deposit. Accepting a wide range of payment methods gives clients every reason to get you paid on time.

4. Automate invoices

Sending invoices in the mail takes too long, runs the risk of invoices getting lost, and adds to the expense of billing clients. Automating the process through smart invoices and accounting software like QuickBooks gets the invoice in the client’s hands more quickly, saves paper and mail expenses, and keeps your bill at the top of their mind. As your business grows in size and complexity, managing open transactions using an automated invoicing software is the best way to protect your profitability and improve your cash flow. When your invoices are integrated with your accounting software, the probability of missing a payment deadline or letting your invoices go stale is minimized.

5. Use cloud-based invoicing software

Cloud-based financial management solutions like QuickBooks allow you to create, edit,and send invoices from anywhere. This is ideal for those times where a client may need you to revise an invoice or send them another copy of it to get paid. Even if you are away from work and get this kind of request, the cloud-based solution provides a way to respond so there is no delay in payment.

Bill wisely and professionally

Consistency and courtesy can go a long way in helping you get paid on time. Here are a few ways to ensure the payment process goes smoothly and avoid late invoices.

6. Offer a retainer

If the client is providing long-term work, a retainer will allow the client to know exactly how much should be paid and when. This helps them manage their budget more effectively, and it may get you paid quicker.

7. Invoice clients as quickly as possible

Invoice your client as soon as possible once the project is finished. Sending your client the invoice as soon as possible links the completed work and payment together, and ensures you’re taking all the necessary steps to reduce your waiting time. Make sure the invoice clearly outlines what the client is being billed for, and include your contact information and the transaction payment terms. You can use an invoice template or invoice generator to help you create a professional invoice that includes all of these key details.

8. Stick to a regular payment schedule

If the client expects an invoice from you on the 1st and 15th of each month, then you need to deliver your bill on those dates. Standardizing the invoicing process can help reduce any confusion about when payments are due. Having a regular schedule could be the difference between getting paid and not getting paid. An automated invoicing system can help.

9. Be polite with your invoice language

While it may seem unimportant, adding lines like “Thank you for your business” and “We appreciate your timely payment” positively reinforces the relationship you have with a client. Be nice, and they just may return the favor by paying on time.

Follow up and stay in touch

If you don’t receive payment soon after invoicing your client, keeping in touch is key to ensuring your client knows you’re keeping track of the status of the payment. Outstanding payments can be stressful, particularly if your cash flow is impacted, but addressing the situation ensures you’ve done what you can.

10. Keep a good rapport with clients

Dealing with clients means you’re in a business relationship, so focus on developing good communication with new clients and understanding each other’s side of the partnership. If and when payment for an invoice becomes an issue, a healthy client relationship can provide a way to work through it and help both parties reach an agreement without fracturing the relationship. Maintaining positive relationships with clients may even prevent issues from ever arising.

11. Review your invoice system weekly

Although it’s easy to get distracted by daily tasks and project work, part of the responsibility in collecting invoice payments is up to you. This means tracking invoices with invoice numbers, and reviewing accounts receivable weekly in order to determine which clients have and have not paid. QuickBooks organizes outstanding invoices according to their due dates, making it simple to see which invoices are unpaid.

12. Send payment reminders at regular intervals

Being proactive before payment is due will help ensure your client is aware of upcoming due dates. Sending friendly, professional reminders up until the due date will help clients remember that the deadline is drawing near or has arrived.

13. Provide a small discount for early payment

Reward those who choose to pay early with a small incentive or discount. This can be a percentage of the total invoice amount, which often adds up for clients as a cost advantage. For example, just a 2% discount on early payment may entice a client to pay the invoice earlier.