Running a financially sound business is the goal of every construction contractor, but one of the keys to financial fitness is ensuring your invoicing process is efficient. How many unpaid invoices is your company holding? We know that chasing down payments are a hassle, but there are professional ways to encourage prompt payment from your clients. Our Clearwater construction attorneys will tell you how. Skip ahead to part two for more tips.
Factors to Consider
Your ability to get paid will depend on your client’s ability to pay on time. This is why it’s important to determine creditworthiness upfront. Getting paid on time is also affected by how fast and accurate you are at invoicing as well as the relationship you have with your clients.
Before the project begins, make sure that clients understand how your billing works and put it in writing. This way, clients will understand what payments you accept, how and when invoices are issued, and any other details that are pertinent to ensuring a smooth payment process.
If you require your clients to pay a deposit up front, you’ll have fewer payment issues. This method can be intimidating if you are desperate for contracts; however, upfront payments demonstrate your worth to clients. Besides, people take more seriously the things they pay for upfront which means they’re more likely to follow up on subsequent payments.
We know how busy you are, but it’s critical that you get payments out on time. As soon as your complete work on the project, don’t waste time—invoice immediately.
Clients will pay more attention to bills when there’s a late fee or interest attached to their payment. Implementing a late fee may be uncomfortable for some, but it’s a way to stand your ground to ensure you get paid. Resist waiving these and specify the applicability of these fees in your contracts and on your invoices.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.