Every contractor business is unique, but one thing is consistent: waiting on payments from clients. Oftentimes, contractors like you can be stuck waiting for over a month for payment. This can occasionally lead you to pull from your savings to cover costs. Don’t get caught waiting on payments! Use these tips to get paid for your contracting work faster.
Communicate Expectations Early
At the start of any project, you clearly set expectations regarding what you’ll provide and what clients will receive. Expectations on payment should be no different. Be sure to include details on when payment is expected, at what intervals, and your policy on late payments. This will leave no question in anyone’s mind and ensure you receive payments consistently and in a timely manner.
Send Invoice Reminders
Along the lines of communication, consider sending invoice reminders in either print or electronic versions. Whichever option you choose, they should include the payment due date, amount due, and information on your late payment policy.
These reminders will bring an upcoming bill to top of mind for customers and even increase the likelihood of receiving payment on time. Plus, it shows that your company is professional, on top of matters, and that you have a zero-tolerance policy for missing or delayed payment.
Digital Invoicing Through an App or Email
It seems as though everything has gone digital now, and invoicing is no exception. Streamline your invoices with an app, email, or software. You can schedule invoice distribution. This provides an option for online payments as well.
Keep Your Invoices Organized
Whether you choose digital or print invoices, it’s important that you keep them organized and easy for customers to locate information. For instance, if your invoice was missing details on penalty for late payments, that could provide a loophole for someone to delay payment.
Here are some details to include on each of your invoices to ensure faster payment.
- The name and contact information for your business
- The name of the customer
- Date of the invoice
- Itemized list of work completed
- Prices of labor, supplies used, etc.
- Detailed terms of payment
Offer a Discount for Early Payment
A great solution to receive payment faster is to offer a discount to customers for early payment. You can try a discount of 10% or even consider another incentive if their payment comes in prior to the due date. This will help prevent tracking down late payments, and it will show customers that your company values being punctual with payment.
Contract Through HFS Financial for Full Payment
The easiest way to get paid for your contracting work faster is to contract through HFS Financial for full payment. One major perk of offering contracting through HFS Financial is that the job is fully funded upfront. You’ll have the cash flow you need for supplies, labor, and more before you ever start the project! Let us pair your clients with the right loan for their home improvement project. Call us today at 1-800-254-9560. “You Dream It, We Finance It.”