If you run IT consulting contracts with your clients, it’s important to make sure they pay you promptly and consistently. Late payment can make cash flow very difficult and build resentment between you and your clients.
This article offers five suggestions to help you get paid fast:
1. Suggest Automated Payments
Suggest that your customers pay for their IT consulting contracts directly from their bank accounts in an automated way, perhaps using a standing order. It may be worth offering a small discount for payments done this way, as you will be guaranteed your revenue at the same point every month.
2. Offer an Early Payment Discount
Some companies offer a discount to clients who pay their invoices very quickly. Offering 5% off to those who pay within 7 days may seem bighearted, but the guaranteed cash flow can be a fair trade.
3. Invoice Clearly
If you make every invoice clear and detailed, you reduce the chance of invoicing queries and disagreements. Make sure clients know exactly what they are paying for.
4. Make Friends
Find out who issues payments at each client site (perhaps financial directors or accounting clerks) and get friendly with them. Look after their computers well; hopefully, they will do the same with your invoices!
5. Deliver Great Customer Service
If you do a consistently great job, most companies will treat paying you quickly and fairly as a priority. The better the client relationship, the less likely that getting paid will be a problem.
How do you ensure you are paid promptly for delivering your IT consulting contracts? Share your tactics in the Comments below.
Creative Commons Image Source: Flickr EEPaul