Getting your invoices paid faster
Every entrepreneur likes his invoices to be paid on time. Unfortunately they not always are. How do you make sure your clients pay them faster? These are a couple of tips & tricks.
1. Add a payment link to your invoice
By adding a payment link to your invoice, your client is able to pay you using iDeal, Paypal or creditcard with the click of a button. Nowadays almost every invoicing system has an option to add a payment link. For instance our system has a connection with Mollie.
2. Payment term
Always state a payment term on your invoice. This way you let your client know what payment term you expect and you have something to fall back on when your client doesn’t pay.
There are some rules for payment terms:
3. Personal relationship with your client
It might be obvious but a good relationship with your client can prevent payment issues. A personal relationship is crucial. Think about it: you would also pay the invoice first of the people you know the best. A personal relationship doesn’t have to mean that you take a holiday together. Simply picking up the phone instead of emailing could already increase the personal relationship with your customer.
What are the consequences when your invoice isn’t paid on time?
For your VAT return the invoice date is leading. So invoices that aren’t paid on time will still be added to your VAT declaration. When VAT is charged on the invoice this will be processed in your VAT declaration and you need to pay the VAT on time.
When a client is long overdue paying you, you have the right to charge interest over the period that has passed since the payment term has expired. You can also demand to be compensated for any legal costs or collection charges. However, it would be nicer if this could be prevented by the tips in this article.