3 Things That Businesses Get Wrong When Collecting Invoices.

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CashBut sometimes, it’s your fault that you aren’t getting paid on time or you’re not getting the full amount because you’re making mistakes with your billing. If you’re having trouble with unpaid or underpaid invoices, before you start throwing accusations around, you should make sure that you’re not making one of these common mistakes.

Confusing Invoices

If the customer can’t work out what they’re supposed to pay and when they have to pay it by, you’re going to have a hard time collecting invoices. This is a particular problem with businesses that work on a subscription basis, like software or satellite companies, for example.

If you’ve got a base rate, then lots of different add-ons, and installation and set up charges for your service, the invoices can get very confusing. But if you use SATbill software, you can combine all of those different payments into one, easy to understand invoice. As long as you’re making it clear what they owe and when they need to pay it by, your customers won’t have an issue paying you.

The Wrong Company Image

Often, the reason that people don’t pay their invoices on time is that they think they can get away with it easily. It’s all about your company image and how people perceive you. If they think that you’re just a small company that isn’t likely to pursue them for unpaid invoices, they’ll see what they can get away with. But if they see you as a big company that has the manpower to chase up all of those invoices, they’re not going to try it.

That’s why it’s important that you’re clear about payment dates and you have a zero tolerance policy when it comes to late payments. As soon as they’re a day late, you need to be on the phone asking where the money is.

Limited Payment Options

If you want people to pay on time, you’ve got to make it as easy as possible for them. If you’re making them jump through hoops, they’re less likely to pay on time. That’s why it’s important that you’re not limiting the payment options. If you require them to pay by bank transfer and nothing else, and that’s not their preferred method of payment, it’s a bit of a problem for them.

You should allow people to pay in cash, by check, by bank transfer, through Paypal, and even using bitcoin if your customers are likely to do that. The more different payment options you’re giving people, the more likely they are to pay you on time.

Sometimes, you’ll get customers who will do anything that they can to avoid paying you. But more often than not, it’s because you’re making it harder for them.

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