How to Get Paid on Time for Outstanding Invoices

The bad news: some clients will pay you late.

The good news: there are certain actions you can take, to lower your chances of getting these late payments. Let’s check them out one by one.

1. Offer a Variety of Payment Methods

Some clients prefer paying by cash, check, or online payment systems, while others would rather go for a direct bank deposit. Opening up to as many payment options as possible gives your clientele more reason to pay you back right on schedule.

It’s always best to think long term: the small fee of integrating credit card payments will cost way less than having to hire an attorney or taking up your late bills to court in the future.

2. Consider Advance Payment Requests

Worried you won’t get paid on time? Consider requesting a partial advance deposit as a safety net.

Now, keep in mind to only go for this approach if it’s sensible in terms of the price of the purchase. In other words, you shouldn’t ask for advance deposits on a $5 bill.

But if you’re working on a months-long project, for instance, or selling a very pricey product, requesting an advance partial payment can help reduce the risk of not getting paid back.

For these types of purchases, asking for an advance payment fee is a common business practice, so don’t worry about your clients getting offended.

3. Provide Early Payment Discounts

To encourage timely payments, offer discounts for customers who pay you back early.

For example, if your usual payment policy is 15 days, reward clients who pay back within the first week, 2% off the entire invoice amount.

4. Include Late Payment Fees

Again, there is no incentive like money. And at the same time, a late payment fee is only fair - without it, you’re basically just offering clients free credit.

Make sure to clearly communicate your late payment fees and how they will occur at the very start of the sale. Include these terms in every contract, invoice, and other written agreement you write.

State the late fee penalty clearly and in an easy-to-spot section of the invoice. To learn more about how to create an invoice and the core elements it includes, head over to our guide on how to make an invoice.

5. Send a Friendly Reminder Email

With the number of emails in everyone’s inbox nowadays, it’s possible that your invoice could have gotten lost along the way. Or maybe your customer simply forgot to pay back - we all get busy and things fall in between the cracks sometimes.

So, stay ahead of the game by sending them a friendly reminder email around a week before the deadline, to let them know their invoice is due soon.

Make sure the email includes:

A subject line with the invoice number

An attachment of the original invoice

Body message reminding them of the due date

Keep the language of the message friendly and polite, so you don’t risk offending or losing the client in the process. After all, the invoice is not overdue yet, so it’s best not to express any irritation, no matter how worried you might be.

End the email by encouraging them to contact you regarding any inconveniences.

Reminder Email Example

Subject: Invoice Number 00001 Due Soon

Hi [Client Name]

I hope all is going well!

I am sending this email as a quick reminder that [invoice number], for [invoice balance], sent on [billing date], is due in a week. I’d really appreciate it if you could confirm whether payment is scheduled.

Please let me know if there are any concerns or issues regarding the payment.

Best regards,

[Your Name].

6. Give the Customer a Call

If the client is completely unresponsive to your emails, you can always give them a call to have a quick chat and figure out what’s going on.

Just like in the reminder email, ask them about any possible issues, and when they plan on paying you back.

So here it is. 6 things to do to make sure you get paid for your hard work. You can make this even better by using invoicing and accounting software

Track Outstanding Invoices with Accounting Software

With accounting software like Deskera, creating professional invoices, and managing your outstanding payments is as easy as 1-2-3!

The software automates every part of your invoicing process, from start to finish.

On the Deskera Invoice Generator, there are over 100+ free premade templates you can easily personalize to fit your business, with your preferred colors, font, logo, and images.

Want to know how to more about managing outstanding invoices for your business? Read the full guide on Outstanding Invoices.