Late payments are bound to happen from time to time, but when they happen often, they can negatively impact your business. From not being able to keep up with your business expenses to spending excessive time tracking down invoices, dealing with late payments is something every business owner wants to avoid. Fortunately, there are several steps you can take to reduce this, and with today’s technology, there are more options than ever available to help.
What Causes Late Payments
First, it’s worth considering why your customers are paying late, especially if this issue is recurring. Here are a few common causes of late payments:
- Administrative issues: There may be a variety of administrative issues at play—from your end, the customer’s end, or both. For example, a customer’s finance team may be overwhelmed and unintentionally let an invoice slip through the cracks. Issues can also happen on your business’ side, if your team lacks communication and a standard process to follow.
- No reminders: Customers often need to be reminded about upcoming payment deadlines—especially if they have a long window of time before the payment is due. When there are no reminders in place (or when they’re only alerted after the deadline has passed), customers may simply forget.
- Difficult payment process: When a payment process is not straightforward or convenient, it may lead to delayed payments. Additionally, customers may not have the funds available to pay in full right away.
Remember, most of the time, customers are not intentionally paying late or trying to withhold payments from your business. However, late payments still need to be dealt with accordingly and should be prevented. Here are a few practical steps your business can take to get paid on time.
Automate Payment Reminders
People are busy, and sometimes, invoices simply get missed. Setting up automatic payment reminders can help your customers remember when their payment deadline is approaching. Many invoicing programs have this capability and make it easy to manage. Taking this step is a great way to nudge your customers without having to spend extra time or remember deadlines yourself.
Offer Various Payment Methods
Allowing options for different methods of payment can make payment easier and more convenient for your customers, increasing your odds of getting paid on time. If you’re currently only accepting one method of payment, it’s worth branching out and adding a few others. Credit card, Apple Pay, Google Pay, and ACH payments are all options that allow for prompt payment. Additionally, allowing customers the option to pay in installments can be extremely helpful, especially if your customers are facing their own cashflow difficulties.
Streamline Your Processes
From monitoring customer credit to managing disputes effectively, standard processes will help in addressing issues and improving efficiency. This might look like dedicating staff members who handle certain tasks, or using specific tools and programs to automate the process. Setting standards, creating internal accountability, and clear, consistent communication will all help to increase efficiency and improve timeliness in payments.
How Viking Client Services Can Help
Getting paid doesn’t, and shouldn’t, have to be complicated. At Viking Client Services, we offer payment processing services that are flexible and affordable, helping businesses of all sizes stay on top of their cashflow. Holding to the highest standards of security and compliance, Viking’s processing services keep data safe and allow users to easily manage their information.
If you’re interested in learning more about how we can help your business with payment processing or other services, contact us today. We’re passionate about helping businesses thrive, supporting them through whatever needs arise.
