How to Keep Outstanding Invoices from Killing Your Business

How to Keep Outstanding Invoices from Killing Your Business

Businesses across the country have had to fight non-stop over the past two years to keep their company alive. Outstanding invoices are just one of the many challenges you might have faced, and with too many of these piling up, you could find yourself one invoice away from going under. Check our homepage to learn more about the services we offer to businesses in the UK, or keep reading to learn our top tips to avoid outstanding invoices for businesses.

Add Clear Payment Terms to Your Invoices

The number one thing you need to do in order to avoid an outstanding invoice is to make the payment terms for your company very clear. If you don’t put the date that the payment is due on the invoice, how will anyone know when they need to pay you by? In every invoice that you write, ensure these are clearly added to the page. This will protect you in the future should you need to take further action to fight again an outstanding invoice you are struggling with.

Following Up Invoices

Outstanding invoices need to be followed up on a regular basis in order to have the best chance of receiving your payment. Many companies genuinely don’t receive an invoice or simply may have forgotten about it during a busy time for the business. Of course, you may find that the company is just unable to pay it at the current time. The more communication you have with a client who hasn’t paid yet, the more likely you will be to receive your money. They will probably just want to get you off their back at some point in the future, so make sure you follow up at regular points with emails, calls, and letters as needed.

Credit Check Any New Customers

There is a huge link between unpaid invoices and new customers, who are more of a risk than returning customers to your business. If you are looking to grow your business, you need to take on new customers at regular points. However, this should always be done with care, and a credit check is one of the best ways to go about this. Especially when you are dealing with a lot of money for an invoice, you’ll want to make sure you’ve done everything you can to minimise the risk you are taking. Sign up with a credit check agency that will be able to support you with this task.

Issue Invoices in a Timely Manner

The sooner you send out an invoice to a client after working with them, the quicker you’ll be able to receive your payment. While this may seem like an obvious tip, you’ll be surprised by the number of companies who delay invoices in order to just save on paperwork time. Don’t leave all of your invoices until the end of the month, and instead, try to do them on a weekly or more frequent basis. This will help you to stay on top of your paperwork and ensure that your invoice isn’t lost or forgotten by the client you send it to.

Early Payment Incentives

If you are struggling for cash currently, receiving early payment could help your business out a lot. Consider adding an early payment incentive, such as a small discount on the current or next order. We recommend doing this during more challenging times for your business when you need to get cash in as soon as possible. Of course, you’ll need to check that this is something you can afford to do as a business owner, but it’s a great way to reduce the chance of an unpaid invoice.

Offer Great Customer Service

Clients are much more likely to pay a company on time when they’ve built up a good rapport with the team. By offering great customer service, you can ensure that you have the respect of your clients and that they’ll want to work with you again. If they know they are going to come back for your service or product in the future, you’ll find that they are more likely to pay on time and respect your business. We recommend working with your customer service team to find ways to retain customers and boost the trust and respect they have for your business.

Outstanding invoices can kill your business if they are not dealt with in an effective and timely manner. Our team will be here to support you at any time if you find yourself overwhelmed with dealing with outstanding invoices. Contact us today for more information about the services we offer. We’ll be on hand at any point to support your company and ensure your business continues to grow and thrive in the ways you hoped for over the upcoming months.