Dealing with overdue invoices: tips to avoid ending up with overdue invoices (PART 1)

The shock you may get after completing your project and send out the invoice to your client is your invoice doesn't get paid, a week or two passed and you never heard from your client. It's a problem every small business owner and freelancer is facing and you may face this problem more than one time. The main problem with the late payments is your cash flow may effected and become unhealthy which prevent your business growth.

There are few steps you can do to avoid end up with overdue invoices:

1- Set your terms and make them clear from the day one.
Be clear about your payment terms before you start working on the project and remind your client with those terms when you send them your invoices, you can add the payment terms in the footer of the invoice.

2- Provide an easy way of payment
One of the reasons that your clients don't pay you on time is that you didn't provide them with proper methods of payment to your client. Try to adopt more than one payment option and try to make the payment easy for your client like the online payment.

3. Increase your down payment
Increase your down payment to be 50% upfront, by doing so you can guarantee to get a good amount of the payment in case your client didn't pay the invoice and also your client more likely to complete the payment if they already did a previous payment cause they need something in return to their payment

4. Consider to charge interest on late payment.
You can charge interest on late payments of your invoices just make sure that your client knows about how much you will charge the interest if they didn't pay you on time. By doing so, your client may avoid paying this amount and pay on time.

You did all these tips and still not get paid on time, stay tuned to our blog to read the part 2 of this article: how to get paid for overdue invoices.


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