You’re booked for a cleaning job.
You’ve arrived promptly. Carried out all of the agreed cleaning services asked for and left the property in pristine condition – and now, well it would be good to get paid.
Promptly.
And, of course, in full.
However, as we’re all too well aware in business, this isn’t always the case, and non-payment of invoices can be a serious problem for cleaning businesses throughout the UK.
So, how can you reduce and avoid late payments from happening, and how can you best deal with late payments when they occur?
Consequences of a company not paying invoice
- Late payments can hinder you from paying your own business bills and invoices.
- As it affects your bank balance, it can negatively affect you paying your staff and teams.
- It can stop you from buying products/services needed to support your business.
- Prevent your business from growing.
- Diverts your attention and additional resources away from other business matters.
- It puts a strain on client relationships, making it difficult to find a way to move forward and continue working with each other.
How to ensure your cleaning invoices get paid
Keep the lines of communication open – being clear and transparent in all your communications is key. Make sure to communicate upfront exactly what services you have agreed upon and the cost of these. Communicate your payment terms, and make sure everyone is aware of what is going on, when, and for what cost.
Be upfront from the very start – what are your terms and conditions, and what are the penalties for late payment? Ensure complete transparency with no hidden cleaning charges or additional fees. Remember, it is also your reputation that is at risk too and good reviews online and via word of mouth can be everything.
Explain your payment terms in detail – establish clear payment terms and make sure to communicate these before you start any cleaning job. When do clients have to pay? How can they pay? What are the consequences of late payment? How will this affect them? How soon will penalties be introduced? Are deposits for larger jobs required? Are cleaning products/equipment included in the price? Make sure to outline every detail.
Invoice as soon as the job is complete – ideally, this should be 24-48 hours after completion. If you’re late in issuing an invoice, clients may also forget that the work was carried out, so payment could be further delayed.
Keep your invoice clear and concise – your invoice should clearly state when payment is due and how your clients can pay. Include a specific date, i.e., 25th April, as well as “payment due in 30 days”. Make sure to include the date of cleaning, a detailed description of what work was carried out, the total due, and clear payment instructions. Make sure your invoice is well structured and includes both your contact details and information and theirs.
Offer incentives for early payments – sometimes offering a 10% discount or similar can encourage clients to make payments before the due date deadline.
Send payment reminders – be polite but firm. Set reminders in the run-up to the invoice due date. Once the email with the invoice has been issued, call your client to make sure they received it and ask if you can be of any further assistance. Make sure to send demand letters and make follow up calls for all invoices not paid situations as soon as invoices become overdue.
Make sure to keep records of all interactions – this can include emails, phone, letters, everything.
If the cleaning payment becomes late:
- Find out the reason for late payment – can you work with the customer on a successful outcome? For example, payment plans?
- Don’t carry out any more cleaning jobs until the invoice is settled in full.
- Instruct and engage with a professional debt collection team. A team like Direct Route can help maintain client relationships and achieve a successful outcome on overdue cleaning invoices. Collection agencies are skilled and experienced in all debt collection techniques, meeting and following all legal and ethical standards when collecting outstanding invoices.
Late payments do happen, and it is vital that you have the right policies and credit control procedures to manage these effectively and efficiently.
Cleaning Services Pay
Late payment is one of the biggest threats to your cleaning business. Negatively affecting your business’s financial health and, ultimately, your business’s sustainability.
We know that you want to continue with your smooth operations and deliver quality services rather than spending your time chasing unpaid invoices.
However, we understand that in the service business that you’re in, when invoices do become overdue, it can prove more challenging because the cleaning has already taken place. Hence, there is a need to address late payments quickly, using some of the tips and suggestions we’ve mentioned above.
Let us help you keep your business in a healthy financial position and support your credit function.
Contact us today.
Call +447860197476