Late payment of invoices can cause cash flow problems. Start by looking at why the invoices are being paid late.
A dispute almost always causes delays in the payment process, these delays usually occur because problems are not raised straight away by the customer. More often than not you will only learn about the problem once the invoice becomes overdue.
Communicating with your customers regularly builds a strong relationship with them, not only will it ensure better customer service on your part, but it can help ensure your invoices are paid on time. This regular contact means you will be alerted to any issues with invoices quickly meaning you can then deal with them before it is too late.
You could include a dispute policy in the terms and conditions on your invoice requesting that your customers make you aware of any disputes they are having within a certain timescale.
If only part of an invoice is disputed, make it compulsory for payments to be made against the part that is not in dispute. This will speed up payment of the undisputed part of the invoice.
Bringing these few procedures into action will speed up the payment of invoices and help to get disputes resolved quickly.
Posted: October 24th, 2014