Invoicing

Unless you are running a retail with Point of Sale (POS) facilities, then if a product or service is invoiced, the due date means a delay in payment. Many companies treat the due date as a deadline, and some will only process on a specific day of the week or month. Some will require a reminder a few days before the due date, and some will need chasing repeatedly after the due date has expired. Knowing these patterns of behaviour help to make the revenue more predictable.

First examine how your repeat customers treat the invoices you send them, so that you know who are reliable, who use fixed dates, and who you need to set an automatic reminder for.

Also, consider changing payment terms:

  • Shorten the issue date to due date – it doesn’t have to be 30 days
  • Take a deposit, or even pay in advance
  • For longer pieces of work, introduce milestone payments
  • Add a digital invoice with an instant payment method

These may be introduced for ‘problem customers’ only, with flexibility offered as a reward for good payment behaviour.