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Dealing with payment delays can be such a headache, right?
It messes with your cash flow and just adds unnecessary stress to your already busy lives. And so many small business owners are dealing with similar challenges. Whether it’s waiting for checks to clear or dealing with long processing times for ACH transfers, the frustration is real.
I recently reached out to a few business owners and asked them about issues they had with getting paid. And wow, did they have some stories to share about their struggles with payment processing!
After hearing so many challenges, I’ve put together four practical solutions to help business owners and managers take on those frustrating late payments directly. Because let’s face it, we all deserve a smoother, more efficient payment process that doesn’t leave us stressing out over when the money will finally come in. You don’t have to just sit back and accept these delays as part of doing business.
Real-time payment platforms
Real-time payment platforms can make a world of difference for your business by allowing you to process transactions instantly using the #FedNow Service or the #RTP Network. With immediate access to funds, you can manage your cash flow more efficiently and keep your operations running smoothly.
Zachary Scott Jarvinen notes that the rise of real-time payment platforms has led to higher expectations for fast transactions, making financial agility crucial for businesses. Prioritizing smooth payment processes keeps small businesses healthy and benefits everyone involved.
Valentin Radu agrees, explaining that getting smarter about handling payments has been key. Encouraging customers to use faster, more reliable payment methods and staying in close contact with banking partners helps keep finances in check. This way, you can avoid the headaches of delayed payments and maintain a steady cash flow. By doing so, you can focus on what you do best—growing your business and boosting Customer Lifetime Value (CLV).
Forwardly takes it a step further with affordable instant payments that happen in only 60 seconds. This kind of speed can make a huge difference in your business, helping you avoid delays and maintain strong relationships with your partners.
Online invoicing
Online invoicing systems can generate and send invoices automatically, track payments, and remind clients about outstanding payments. This cuts down on manual work and minimizes the chances of human error, speeding up the payment cycle. Plus, online invoicing offers clients more flexible payment options, making their payment experience smoother.
There are plenty of online invoicing platforms out there to choose from. For example, Intuit QuickBooksoffers easy-to-use invoicing tools that integrate with your accounting software. FreshBooksprovides professional-looking invoices and customizable templates, as well as automated reminders.
Payment terms and policies
Clear and updated invoice payment terms and policies can make transactions smoother by setting clear expectations for your clients about when and how to pay. Laying out specific deadlines and what happens if payments are late can encourage clients to pay on time, helping you avoid cash flow problems.
For instance, you might state on your invoices that payment is due within 15 days of the invoice date and that there will be a 5% late fee for payments made after the deadline. Being upfront about this in your invoices and contracts helps both you and your clients stay on the same page, making transactions easier and reducing the chance of payment delays or misunderstandings.
Early payment discounts
Offering discounts for early payments is a great way to motivate clients to pay you sooner. This helps improve your cash flow and reduces the chance of delayed payments.
For example, you can give a 2% discount on the total invoice amount if clients pay within 10 days instead of the usual 30-day term. This kind of incentive can nudge clients to pay early, helping the firm manage its cash flow better and avoid potential delays in getting paid. Clients also enjoy the savings, which strengthens your relationship with them and may lead to more business in the future. Make sure that you can afford the discounts first, though!
Take control of your cash flow
Slow payment processing doesn’t have to keep you from achieving your business goals. By implementing these practical solutions, you can streamline your payment processes and keep your business moving forward.
Ready to take control of your cash flow? Get started with Forwardly today to streamline your payment processes and avoid late payments. With faster, more reliable instant transactions, you can keep your business on track and moving forward.
Sign up now to experience the difference.
Originally published on LinkedIn
