Why is it important to get paid on time?

Late payments. These words can have a huge impact on your business. Money is the cornerstone of any business. Clearly, if you don't get paid, you won't be able to keep your business afloat. Late payments make it difficult for a business to pay its staff or its invoices.

The quicker money gets into your company's coffers, the quicker you can pay your own bills.

Late payments can have many detrimental effects on your business, including:

• They can affect your productivity. As a business owner, you undoubtedly have other priorities than reminding your customers to pay their invoices. Claiming your money is time-consuming and it is a job in its own right.
• They can affect your ability to forecast your cash flow. Performing a cash flow forecast is essential if you want to avoid future financial problems. It can be difficult to make an accurate forecast, especially if you're still facing late payments.
• They can prevent you from running your business effectively. Less liquidity due to late payments means payment difficulties for yourself. You may not be able to pay your own bills. It's a domino effect.

So how can you ensure you get paid in full and on time?

1. Announce the color
   Establish clearly defined credit and collections policies up front. Consider how much and how long you can afford to accept to get paid, without affecting your cash flow. Decide which customers will be eligible and how many. Specify this in your general payment conditions, as well as the consequences of initiating the recovery process in the event of late payment.
   

2. Watch your back
   Always ask your customers for a quote or a signed order form, obviously including your general conditions. Find out about your large customers and their creditworthiness. Take calculated risks.
   

3. Require deposits
   It is normal to request a deposit when ordering, or even a second deposit before the end of a project. Requesting reasonable deposits is a sign of seriousness for your client and guarantees liquidity for your company.
   

4. Invoice quickly.
   Don't wait to send your deposit and closing invoices. Highlight a due date as well as your payment terms and conditions.
   

5. Vary the payment methods
   Depending on the country and mentalities, offer various electronic payment methods (transfer, credit cards, etc.) but also cash or check. Regardless of the method used, the important thing is to get your payments on time and satisfy your customers by making their job easier.
   

6. Check your accounts
   It is important to monitor your customers' payments regularly, for example every month. This will help you identify any changes that could alert you to a potential problem. So, a regular customer who is falling behind on their payments should alert you. Analyze the situation on a case-by-case basis and if necessary, take appropriate action before the situation gets out of control.
   

7. Don't put all the eggs in one basket
   Diversify your clientele. 100 small customers will always be preferable to one large customer, especially when they are late on their payments and thus risk putting your business at risk.

To increase your chances of getting paid on time and in full, you need to establish and follow good management practices from the start. Remember, a sale isn't a sale until it's paid for!

Business is a balancing act. You need cash flow to grow and make money. Getting paid on time can be the difference between a good month and a bad month. If you are paid late or submit an invoice late, your cash flow may be affected.

What to do in case of late payment?

When a problem arises, when you are faced with a late payment, act quickly!

Send a first payment reminder directly. And, if your bill is still not paid when it is due, move up a gear and contact a debt collection company. You deserve to be paid. Don't put your company's cash flow at risk!