Posted - 07/09/12 | 0 Comments

Are you an easy target for late payers?

Is your business sending out the wrong signals – and paying the price?

“Small-and-medium-sized enterprises (SMEs) wait an average of two months to get paid by other businesses, and many cannot survive the problems caused by overdue payments.” So says the Guardian.

In an insightful piece called ” Avoiding overdue payments: top tips for your small business”, Manos Schizas gives some great tips on how to get paid on time.

There’s some sound advice and a big emphasis on credit management. But it was Tip #5 that caught our eye: ” Be organised about invoicing and collections”.

The key point – made very well by Manos – focuses on the psychology around payments. The bottom line is this: “Some customers look out for signs of disorganisation and use them to determine which suppliers they can get away with paying late”. Cunning eh?

And as Manos urges, “Make sure you don’t present yourself as the easiest or most deserving target.”

The Clear team would echo this point absolutely. (That said, we stress this only applies to the worst type of customer – not the normal or better ones.)

In the current climate, more than ever, getting your invoices organised is vital. Whether you’ve managed this or not, really shows.

If you submit your invoices on time like clockwork and chase up like clockwork … then even those less helpful customers are more likely to pay like clockwork. They realise there’s no room for manoeuvre. You’re the supplier who chases first, not the sloppy one they can get away with paying last.

Clear can help with this in many ways. But our following features are all especially relevant:

  • Clear generates professional-looking invoices, so customers know you mean business. Your payment terms and bank details are stated clearly.
  • Invoices can take seconds to create and send using Clear – so submitting them on time (even when you’re busy) is very easy. What’s more, recurring ones can be sent automatically each month.
  • Clear’s auto-chasing feature means you can be as firm, polite and insistent as you wish if payments become late. Clear does the chasing for you – so you don’t waste precious hours doing this.

Put simply, Clear makes organised invoicing easy.

You can read the Guardian article here.

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