Late payments. If you run your own business, no doubt you will have had to chase late payments. But is there an easier and less painful way? In this article we will discuss tools that are available to eradicate late payments.
How Late Payment Affects Businesses
“British businesses currently have to wait an average of 22.5 days beyond agreed credit terms to be paid by their customer.”
Late payment can impact businesses in various different ways. It impacts on cash flow. Cash flow issues often mean companies are unable to employ more people, and to train the ones they do have. It can affect a company’s ability to pay their expenses, such as staff salaries, rent, supplies and operational expenses. With outstanding payments owed, companies find they can’t borrow and struggle to raise capital to invest in their business to grow.
This has a knock on effect on the economy. People not paying their debts is bad for the economy. Attempting to keep their costs down, the debtors are paying as late as they can.
Advice For Eradicating Late Payments
Rule number one.
Make it EASY for your customers to pay you. Spell it out to them if you have to. The clearer you are about the options for payment, the more likely you are to get paid on time.
Be sure the options you offer are easy to navigate and don’t take a long time to set up or to make a payment.
Rule number two.
State your payment terms clearly and make sure they are prominent, not hidden away at the bottom of the invoice. If you send an email along with your invoice, state your payment terms in there too.
Rule number three.
Thank them IN ADVANCE for their prompt payment.
Rule number four.
Ensure you have tools that can automate reminders and late payment notifications. A fully automated and integrated system is ideal.
Rule number five.
Decide your business strategy for dealing with late payments, BEFORE they happen. Know the exact steps you will take, how many reminders and notifications you will send out and how you will escalate the issue, if it becomes necessary to do so.
Tools For Eradicating Late Payments
Zoho has different tools that allow you to automate and track your business finances – making sure you keep on top of your invoices and payment dates. This will take you a step in the right direction to eradicate late payments.
Zoho Books: is easy-to-use, online accounting software that manages your businesses finances, VAT and sends professional quotes and invoices to clients.
It allows you to auto-charge for recurring transactions and lets you send automated reminders to customers – eliminating the worry of chasing payments manually.
You can simplify payment procedures for your customers by giving them access to the client portal and enable direct portal-based payments.
Taking away the recording of payments manually, Zoho Books automatically marks invoices as PAID as soon as customers pay you.
Zoho Invoice: this is online invoicing software that helps you craft professional invoices, automatically send payment reminders and get paid faster online.
Zoho Checkout: allows you to accept payments anytime online. You can build a secure payment page without writing a single line of code. Then make your payment page your own, where you can fine-tune the look and feel of the page to offer your customers a seamless brand experience.
Zoho Checkout enables you to take one-time or recurring transactions, taking the hassle out of collecting payments.
Read more about the Zoho Suite and range of tools available here.
Zoho Payment Gateways Available
If you’ve read some of our other blog posts, you’re no doubt familiar with the different aspects of the versatile Zoho.
Zoho integrates with major online payment gateways, to help you receive payments for your invoices online.
Zoho is already smoothly integrated with 11 payment systems, and is now also blended with GoCardless via its savvy finance apps, Books, Invoice, Inventory, and Subscriptions. This allows you to take direct debit payments on a regular basis!
GoCardless is an integration advocate, flawlessly syncing with accounting software giants like QuickBooks and Sage Business.
Direct Debit instructions can be established by your clients, who can simply pay you using a link in the invoice email they receive or via the Client Portal.
There is the option for clients to save their account details for future transactions, making it super swift next time they purchase anything from you.
It also allows teams to receive real-time notifications of any failed or cancelled payments so they can act quickly to remedy the situation. This ‘live’ payment data is sent to internal teams to influence how they engage with customers, in a smarter, more informed way.
Get Paid On Time!
Using Zoho’s financial platform means businesses like yours can wave goodbye to late payments. With GoCardless and Zoho’s choice of 11 Payment Gateways (such as Stripe, WorldPay and PayPal), accepting payments is easy and effortless.
When things are quick and easy people are more likely to submit payment on time.
However, if payments are late, you can chase them up with ease using the Zoho automated messages and GoCardless’ real-time payment data.
With the new marriage between Zoho and GoCardless being stress-free to set up, hassle-free to use and free in general, it’s a winner for businesses.
Think of all those wonderful and fulfilling things you could be doing when you’re not chasing up payments, advising clients how to pay or closely monitoring your invoices.
Maybe you will choose to dedicate more time to your marketing, come up with a creative new product, make a splash on the networking scene, work from home and spend more time with your family – who knows? The business freedom possibilities are endless!
We are offering a free consultation to organisations to discuss how you can use Zoho and the suite of apps available for you to run your entire business, now and in the future. Sign up for your free consultation by clicking here.