How to get paid on time.

As a sole trader or small business, it’s really important that you get paid in a timely manner, but sometimes, for any number of reasons, payments can be missed or late, leaving you struggling a bit with cash flow.

There are a few things you can do though to help get paid on time. It’s very easy for payment dates and invoices to be missed, especially if your customers are other sole traders and small businesses with very little spare time on their hands. The traditional method of sending invoices and waiting for them to be paid may not be the best for everyone so there are a number of other ways to get paid, especially if you make it as easy as possible for your customers. If they have a method to pay you that is minimum effort for them then it can really help you a lot.

If you are sending out invoices the traditional way, make sure credit terms and due dates are clearly communicated. This minimises mistakes and misunderstandings. Also don’t be afraid to send payment reminders with the invoice again a few days before the due date. This makes sure that the customer knows the payment is due soon.

There are other ways for clients to pay that may be easier for them. We all like things to be a little more efficient and easier, so showing flexibility with payment options can really help. For example, GoCardless is a tool that allows for one-off or regular payments to be set up and once setup the client doesn’t have to do anything, the money comes from their bank account on the due date. Simple and easy for everyone.

You could even offer prompt payment discounts if you feel it’s worth it. If the customer pays within a few days, it may be worth taking a 5% hit to keep your cash flow looking good, although that really depends on your business finances.