08 May Invoice Payments
What is an Invoice payment?
Traditionally businesses have chosen their terms they apply when sending out an invoice after delivering a service or for payment of a purchase or sometimes a mix of both. This may be due and payable, 7, 14, 21, 28, or 30 days. Often the number of days is not acknowledged by the customer who is more focussed on their cash flow than yours and will pay according to their timeline, not yours.
Applying penalties is another approach taken if payment is not paid within your timeline. However, this can pose a problem if you are not aware or have empathy for your customer’s position, so open communication and an investment in time to follow up and pursue are often involved.
Invoice payments are quickly built in SQID’s Payment Manager platform allowing your business to import customer lists and send invoices in batches, customize individual invoices, and send these via SMS or email to your customers. On receipt, they can pay immediately. You can reward them with a discount to make this approach more inviting. The benefit of SMS is mainly the cut-thru it has in reaching your customer to get them to respond.
The other benefit of SMS is that you can send reminders periodically to automate the follow up with your customer. This is to ensure the invoice is paid in an acceptable period and also used to flag where a problem may be, to prompt you to reach out to your customer to find out why they have not paid before the debt goes too far in arrears.
Want to learn more about how invoice payment can help you to streamline your communications and convert more payments to support your cash flow? Contact us to discuss how!