“They owed us 250k since last year”
I looked on as my former MD told me about a major consulting firm who ordered for some furniture sets but had not paid for months even after several calls to their account manager.
How could that happen?
Why is it that people don’t pay their debt? I wondered to myself.
Why customers don’t pay their debts and how to fix it?
It is easy to argue that debtors don’t pay because they probably do not have the money to pay. However, there are cases where it is not really a money problem. In fact, the furniture client who owed us for months could even afford to pay on the spot if we had offered him a convenient paying option.
It became obvious that even customers with the capacity to pay can delay payment.
The truth is that, as a business owner, all this delayed payment can affect your cash flow and business model especially if you require a timely turnover to enable you to meet up with some financial needs.
So, how do you fix this?
Firstly, it is important to state that having clear payment policies for your client is important. This ensures that both you and they understand clearly the implications of late payment.
In this article, I will explain 3 ways to ensure that you get your customers to pay on time.
3 ways of getting your customers to pay on time.
1. Use an online invoice system:
Unlike a paper invoice, an online payment invoice allows you to send an invoice with payment instructions.
On VoguePay, you can send reminders for invoices when they are due and offer the debtors the option to pay with any of our checkout options (like a bank, card, USSD or bank transfers). This way, you eliminate the excuse for not paying.
Learn how to create and manage invoices on Voguepay
2. Set up Recurring Payment:
If you have customers that make repeat orders for your products (daily, weekly or monthly), you can setup a recurring billing payment for them. Creating options for recurring billing allows your customers to pay for subscription services and the payment will be automatic.
With this feature, there’s no need to chase down your clients.
3. Ask for Upfront payments:
Though some clients may not want to pay for your services 100% upfront, you can consider breaking your project up into checkpoints or milestones. For example, as a freelancer, you definitely want to send payment requests before you deliver the final work.
You can do this by generating a payment link on VoguePay
Simply send this link via social media channels like WhatsApp, Facebook or even email and SMS. You don’t even need to have a website to receive this payment as your client can complete the payment order on VoguePay.
Another option is to send an online invoice or ask them to pay online if you have integrated voguepay to your website
Using any of the 3 options will enable you to take away some of the burdens of your customers have about paying their fees on time.