When the Cheesecake Factory and other retailers have announced that they will not pay rent, it can give pause to small and growing businesses who need their invoices paid. During such an unprecedented time, most everyone is feeling the panic and stress about potential loss of cash flow. It doesn't seem like a good time to ask for payment from clients or customers who may be facing their own crises.
When a client hasn't paid their invoice on time, business owners feel the pinch in their cash flow. Even if sales are being won and the work is being done, without timely payments from their customers, vendors, accounts payable and employees go unpaid. It takes time and resources to chase down payments, affecting efficiency and productivity as well. Instead of wondering if your clients are going to pay their invoices, take control of the situation proactively and in a non-threatening manner.
Here are the best business practices to get prompt payment from your clients.
Suing a client isn't top of anyone's list of things to do but if a client is refusing to pay, it may be the logical path to getting what's owed to you. Before you take your client to court, you'll need to make sure that you're prepared, have a good case and that it's worth the cost of your time and money.
When you're thinking of suing for nonpayment, here are your next steps.
As an owner of a B2B business, or even if you work in accounts receivable for a B2B business, you know the headache of tracking down past due invoice payments. While it would seem that you've done everything necessary to prompt on-time payments, there's always that one client that pays late or not at all. If you've ever considered hiring a B2B debt collection agency, you might have questions about their processes to collect what's owed. What will they do for you? And most importantly, how much does it cost?
Have you ever wondered ... will B2B collection agencies work hard to recover my company's cash?
Whether you're a freelancer, contractor, startup or small business, tax season is the time of year that reveals any changes in your business over the past year. If you've not kept up with your income and expenses, tax season will kick you into gear. If you're unsure about write-offs, deductions or even how much tax you owe, tax season is the time to get informed.
Do you know if your growing business is prepared for tax season?
If this blog is anything, we hope that it's helpful to small and growing businesses. Our focus is intended to offer education on getting organized, retaining clients and ensuring that your invoices are paid in a timely manner.
We've reviewed the most popular blog posts and topics so that we can bring more of the same to our readers. If you have any suggestions, please leave us a comment so we continue bringing you helpful tips to employ in your business.
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If the thought of an uncomfortable meeting with your client makes your stomach hurt, you're probably already shuddering at the title of this post. Invoice disputes usually mean that the client owes you money and is simply unwilling to pay what you're asking. Is it possible to figure out a solution to this situation with an in-person meeting?
Should you handle an invoice dispute in person?
No one goes into a relationship, business or otherwise, planning how to end it. Firing a client is an unfortunate necessity when things go terribly wrong. The first thing to determine is your last straw. This client may be:
- consistently asking for services beyond the scope of the contract.
- pushing back on everything they're paying you for.
- difficult to work with.
- not paying you for all of the work you've already done.
Now that you know you've had enough, do you know what to do next?
Here's what to say and do when you're firing a client.
When a client owes you money, any interaction can be strained or even awkward. You want to maintain a good quality business relationship but you also have to talk about money... and that can be an uncomfortable conversation. While there are no guarantees that your clients will always pay on time, there are some things that you can do to get them to pay faster.
10 ways to get your clients to pay their invoices faster.
In business relationships, money is part of the equation. The thing to remember is that both parties are looking for value and trust. Your client may ask for discounts. You may want to be paid up front. Your client may need to settle old debts with you. These conversations don't have to be uncomfortable if you know where to start.