Late payments are among the toughest challenges that most freelancers and small businesses face. For instance, if you’re an electrician, you may require timely payment to pay off other subordinates and purchase work equipment for further projects. However, late payments can delay operations and upset your employees. While the time of paperless invoicing for electricians is here, most companies still rely on paper invoices and fail to send them out on time. That’s one of the most contributive factors to late payment from customers.
Before you can learn to deal with the problem, it’s important that you know how to deal with a customer. Once you know how to communicate with customers, you can inform them about the consequences of late payments. The consequences might be as simple as informing them about your operational difficulties in providing quality services. Or, you can add late payment charges to increase the overall payment.
Utilize Online Invoicing Tools
Do you know that paperless invoicing for electricians can solve a number of issues, including late payments from customers? Well, if you haven’t already checked out the plethora of online tools available, now’s the best time to check them out. There’s a range of free and premium online tools on the web that help small businesses and large corporate firms deal with their invoice processing. Technology is at the forefront of every department and operation, whether you talk about a small business or a multinational corporate firm.
The most common reason electricians may get late payments from customers is that they forget to send out timely invoice reminders. Sending invoices isn’t an easy task if you’re already burdened with other responsibilities. So, online tools can come in handy to remind you about due payments, upcoming payments, and payments that are well beyond the due date.
You can check out multiple online tools that automatically send out invoices to your customers and remind late payers about the late payment charges that apply to their invoices.
Opt for Credit-Checking Online Tools
Credit checking tools help you gain insight into customers’ credit scores. For instance, if you recently completed a large electrical project and aren’t sure if you should let the customer pay later, you can use credit-checking tools ASAP. They will help you realize the customer’s latest credit score.
If a customer has a good credit score, you can expect timely payments from them. However, if the customer has a well-below average credit score, you should emphasize the need for timely payments and notify them about deadlines.
Be Persistent and Proactive
Never let something as important as a late payment slide easily. You can’t run your operations without consistent cash flow. Without it, you risk going bankrupt. That’s why most professionals suggest that you take good care of your customers but also help them realize the importance of taking good care of you.
Don’t be pressed by excuses from late payers. Take matters into your own hands rather than letting it be a game of chance. Talk to your clients right away. Send them notifications, email reminders, or give them a call at the most appropriate time at which you think they will be free of tasks.
Talk to them and let them understand how late they’ve been in paying you. Help them acknowledge that you’re not serving just one client but rather a diversified client portfolio. If a late payer hasn’t come up with previous invoices in addition to the latest invoices, send them a collective reminder.
If possible, press your client to pay on time, rather than being put down by excuses, be proactive and persistent in getting a payment date. You can settle for an installment plan after a meeting with the client. In other words, come up with a solution instead of listening to late payers’ excuses
Impose Late Payment Charges or Offer Discounts
Furthermore, you can also impose late payment charges that will subsequently add to the overall payment that the client has to pay. This will motivate some to pay early to avoid paying more.
Go for a Legal Action
Patience isn’t the answer every time, and you may have to take the matters to legal proceedings at some point. Depending on the size of the debt, you can push the matter of late payments into court. Talk to an attorney or consult your personal business lawyer to sue a client holding down a huge chunk of your payments. Sure, it’s not great to go to court to settle a business matter, but if that’s how you can get your payments out of late payers, it’s an appropriate solution.
You can write a letter of formal claim to the court with regard to the late-paying customers. You can land an appeal for the authorities to get you your deserved payment. Keep in mind that professional advice may help.
Cash flow is one of the most significant concepts of a successfully running business. To keep operations ongoing without a drop in supply, it’s suggested that you keep payments arriving on time. Paperless invoicing for electricians is one of the major ways to deal with the issue. You can send out timely notifications or even early reminders about the upcoming payments that your customers have to tend to.
Conclusively, you can use online tools to find out about the credit score of several customers. This will help you separate the late payers from timely payers. Following that, you can emphasize the need to get timely payments from late customers.
Sign up to our newsletter