It is vital for any business that debtors pay invoices on time. Unfortunately, in practice, not every outstanding invoice is paid on time. However, you have a number of options to speed up payment. If you use the tips below, you will increase your chances of getting your invoices paid faster.
1. Send invoice faster, get invoice paid faster
It depends on your business whether you send invoices every month or after completing a job. Getting an invoice paid faster is possible by preparing and sending the invoice as soon as possible after the work is completed. A debtor who gets the invoice quickly tends to pay it faster. If you wait a few weeks or until the middle of the next month, the debtor’s sense of urgency to pay is already much less.
2. Provide for ease of payment
An invoice will be paid faster if you provide for ease of payment. If you use accounting software, it is useful, for example, to include a payment link in the invoice. The debtor sees the outstanding invoice and can arrange payment directly by clicking on the link. It even turns out that such a link leads to getting an invoice paid three times faster. The available link makes it extra simple for the debtor to initiate payment at the touch of a button.
3. Keep the payment period short
The legal payment term is set at 30 days if no agreements have been made. However, it is allowed to agree on a shorter payment period, such as 15 days. This will help you get an outstanding invoice paid faster. If payment is not forthcoming, you will have the opportunity to respond more quickly and send a reminder. In that case, do keep in mind a reasonable period to pay. For companies, it is fine to send five days or seven days as the payment term when sending a reminder or summons. In the case of private individuals, it is advisable to use a payment term of at least fourteen days when sending a reminder, demand letter or summons.
4. Call the debtor if payment is not made
It is very annoying if payment of the outstanding invoice is not forthcoming, and even more annoying if you have already sent a reminder or even a demand for payment. In such a situation, it may help to make personal contact to find out the reason. If it turns out that the debtor is still unwilling or unable to pay, it is time to take the next step. For instance, using a collection agency or contacting a bailiff to start legal proceedings.
5. Work with partial invoices
Of course, it happens to many companies that they are connected to a client for a longer period of time. In that case, if the work takes, say, three months, it is not always wise to send the invoice only at the end. It is then possible to work with partial invoices, whereby the work performed is invoiced each month. You will then get your money faster and not run the risk of finding out after many months that there is a defaulter.
6. Factoring
There is another tip for getting invoices paid faster, as it is possible to get invoices paid in advance. The name for this is factoring, where you sell the transaction regarding the issuance and acceptance of invoices. Factris is a specialist in this and takes ownership of the invoices from you. In doing so, you get the guarantee of collection and insurance of the invoices. You then pay a fee for this, which when you take over the invoice consists of a minimal discount on the nominal value. The advantage is that you send the invoice to the debtor yourself, but the money from the invoice will be in your account via Factris within 24 hours of the invoice sale. You also have the choice of selling all or part of your invoices to us. We provide customisation in this respect.