The fear of not being paid.

Money, for some people, is something usual, for someone and an instrument for pure growth. Today, we will discuss one of the significant fears of the trucking business, which is the fear of not being paid for the work you have provided. Consumers do not pay invoices on time (or at all) for a variety of reasons, ranging from missing bills to unforeseen additional charges that customers realize they cannot afford. Many small business owners are unsure of how to politely request late payment. Regardless of the reasons, an unpaid invoice is harmful to your organization. If you want to maintain your cash flow strong, you must act; being honest with clients and having some backup measures on hand are essential. These methods may be applied to other companies, so let’s hop on and overpass one of the possible nightmares, the money problem.

1. Before offering your service, discuss all fees and payment terms
Putting everything on the table straight immediately not only establishes your client's payment expectations but also develops the trust required for a healthy, good customer relationship. Before beginning a project, ensure that your client understands the estimated costs and that you take the time to answer any queries upfront.

2. Bill for work in advance
If you believe that using an invoice method is too dangerous, request complete payment before beginning any work. According to Mat O'Flynn, co-owner of Gilded Agency, the best method to reduce nonpayments is to bill for the work upfront. Some customers may be hesitant to pay before receiving work; it's a two-way street. Encourage them to study testimonials or contact prior clients for comfort. "If you have a spotless track record and continuously take care of clients, you will gain more and more right to receive payment before work," stated Ben Giordano, owner, and founder of FreshySites. "If someone has any questions about our policy, I advise them to phone any of our clients, any day, any time, and inquire about it." You can also request a deposit before beginning any work, and turn down customers who do not appear to be a suitable fit. This is typically obvious from the start; if there is a problem with down payments, there will almost certainly be problems with subsequent invoices. "If a client refuses to pay a deposit, I immediately know not to engage with that client, even if they subsequently beg you to," O'Flynn stated.

3. Send invoices ASAP
With so many responsibilities as a small business owner, it's easy to lose sight of a client invoice. You might even forget to send one in the first place, and pursuing a client for payment on a bill you never sent tarnishes your reputation. To avoid falling behind, Waldorf advised sending your invoice as soon as a job was completed - and staying on top of it until it was closed out. The Speed Bill is one of a kind company to take care of your invoices, check it out here.

4. When dealing with late customers, be persistent
If a consumer does not respond to electronic correspondence concerning their bill, phone them every day until they do. "Don't be aggressive; just keep asking," advised Hunter Hoffmann, head of communications for small business insurer Hiscox in the United States. "Insist on settling the accounts so you may both focus on more essential things." It will become much easier for them to pay you if they continue to avoid your calls and make excuses."

5. Charge late fees
No one likes to pay a late charge, and having them in place ahead of time can help discourage consumers from paying their invoices late. Create a system that is supported by a policy or set of terms of service. For example, if you don't pay within five days, you get a warning; after ten days, you get a late fee; and after twenty days, you lose service, according to Giordano.

Let’s imagine the worst case scenario, where the customers are not willing to pay.
The first step in collecting payment is to send a courteous reminder that a customer's bill is past due. Most of the time, a late payment was unintentional, and receiving that first follow-up is enough to convince a client to pay as soon as possible. Waldorf admitted that discussing money isn't often easy, so you might want to start slowly. Some clients try to avoid paying by claiming they lost the bill or that they need to reconcile their records to establish the right payment amount, according to Hoffmann. If this is the case, Hoffmann recommends immediately sending an updated invoice - even if you know the customer has the original - to eliminate this excuse. If your client still refuses to pay, be willing to listen to their reasoning. Giordano advised inquiring about their pleasure with your work, their financial difficulties, and anything else that would lead to their refusal to pay. Create a demand payment letter to demonstrate to the customer that you mean business. A demand letter is a formal written letter that describes the amount owing to you and specifies what will happen if the debt is not paid by the due date.

That’s being said, if you want to avoid some of this, The Speed Bill is your solution, because we offer the best financial services to your business. We take care of your finance while you manage your business. Not convinced? Visit our site.