Search
Close this search box.
Blog » Business Tips » 3 Reasons Your Invoices Get Paid Late

3 Reasons Your Invoices Get Paid Late

invoice today by einvoicing

Having many invoices out pending can be destructive to cash flow and lead to invoice disputes. You need payments to flow in regularly so you can pay your business expenses and you can give yourself a paycheck. If you notice invoices get paid late often, there may be a few mistakes you’re making that are causing clients to pay after the deadline.

You Send Invoices Late

Clients follow your lead. If you’re sending invoices out several days or weeks after a project, the client may feel less of a sense of urgency to pay the invoice on time. Get your invoices out in a timely manner. Outsource bookkeeping if you need help.

If the client has a deadline when you have to send in an invoice each month for payment, make sure you meet the deadline so you can get paid on time. Staying on top of your bookkeeping each month will help ensure you get out invoices quickly and you receive payment promptly.

You Don’t Give Easy Payment Options

The easier it is for clients to pay your invoice the faster they’ll do it. Online payment systems where clients can use a credit card or debit card can make payments simple for both parties. The client inputs payment details online and you get money quickly.

Put yourself in the client’s shoes for a second and take a critical look at your invoicing and payments system. Is it clear? Is it easy to pay you? If not, think about making some adjustments. Do you need to upgrade your invoice system? Do you need better payment options?

There Are No Repercussions

If you have one or two bad seed clients who always pay late it could be that they’re doing it because there are no repercussions. You could consider updating your contract and imposing a late fee for current and new clients. You could also stop doing work for the client until they submit payment for the prior invoice.

Be careful not to continue doing work for a client when you have a backlog of many invoices unpaid. What if they decide not to pay at all? You’ll have spent hours of work on a project without any cash to show for it. Continuing to work without getting payment can also devalue your work. It’s showing the client that you’ll continue doing the job without cash. Would you feel urgency to pay someone if they kept doing work for no money?

Addressing the Problem When Invoices Get Paid Late

Late payments are something you want to nip in the bud right away. Clients can get into the habit of paying late and it can turn into a frustrating cycle. You have bills to pay and you’re exchanging a service for pay. If invoices get paid late consistently, the client isn’t fulfilling their end of the deal and you must to address it. You also need to take a critical look at your invoicing and payment process. If it’s disorganized, making improvements to how you invoice and how clients pay you could inspire faster payment.

[Related: Three Warning Signs of Clients Who Are More Likely to Pay Invoices Late]

About Due’s Editorial Process

We uphold a strict editorial policy that focuses on factual accuracy, relevance, and impartiality. Our content, created by leading finance and industry experts, is reviewed by a team of seasoned editors to ensure compliance with the highest standards in reporting and publishing.

TAGS
Personal Finance Writer
Taylor K. Gordon is a personal finance writer and founder of Tay Talks Money, a personal finance and productivity blog on hacking your way to a happier savings account. Taylor has contributed to MagnifyMoney, The Huffington Post, GoGirl Finance, Madame Noire, and The Write Life.

About Due

Due makes it easier to retire on your terms. We give you a realistic view on exactly where you’re at financially so when you retire you know how much money you’ll get each month. Get started today.

Categories

Top Trending Posts

Due Fact-Checking Standards and Processes

To ensure we’re putting out the highest content standards, we sought out the help of certified financial experts and accredited individuals to verify our advice. We also rely on them for the most up to date information and data to make sure our in-depth research has the facts right, for today… Not yesterday. Our financial expert review board allows our readers to not only trust the information they are reading but to act on it as well. Most of our authors are CFP (Certified Financial Planners) or CRPC (Chartered Retirement Planning Counselor) certified and all have college degrees. Learn more about annuities, retirement advice and take the correct steps towards financial freedom and knowing exactly where you stand today. Learn everything about our top-notch financial expert reviews below… Learn More