Are late payments slowing killing your business?

The latest research shows that around 35% of invoices exceed the standard 30-day payment terms and require chasing*.

You do a great job, you should get paid within the time stated on the invoice.

It sounds simple enough, but in reality it’s one of the biggest challenges we face.

As a small business, late payments can mean the difference between being profitable or not. The worst case scenario has you losing money on a job, or never receiving payment. If you need to pay other suppliers or subbies on time, you might be out of pocket for months to come.

According to Small Business Ombudsman, Kate Carnell, 90% of Australian small businesses that go broke do so because of cash flow.

Utilising simple technology

At Bridge, we make it really simple to set up terms and conditions for payment on all your quotes and invoices. You receive notifications when a customer has viewed an invoice, paid it or if it is overdue so you can follow up. You can also accept customer card payments with Bridge, meaning your customers have more ways to pay you…on time.

Helpful tips for getting paid

 

Here are some other great tips on how to ensure you’re getting paid on time:

  • Offer a 5% discount when a customer pays within 7 days
  • Provide online payment gateways to direct debit or accept card payments
  • Track your overdue invoices with smart technology like Bridge App which sends you a notification as soon as an invoice is overdue
  • Set your payment terms up front on all quotes and invoices
  • Most of us don’t like confrontation, so send reminder text messages to your customers as a soft nudge
  • Remind your customers you’re a small business and their delayed payment has a big impact. A customer may not see it as a big deal and something they’ll ‘get around to’. By reminding them you’re not a faceless corporation, this can connect with them and prompt them to make it a priority

 

*Small business ombudsman Kate Carnell, Fairfax Media, Interview, 27 September 2017.

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