Late Payment Solutions for B2C Customers
- Incorrect invoice
- Lost invoice
- Check is in the mail
- Compromised credit card in need of replacement
- Forgot to pay
- Personal cash flow issues
- Incomplete or unsatisfactory work
- Work completed a long time ago
Why Do B2C Customers Pay Their Invoices Late?
Unlike B2B customers, the reasons for late payment from B2C customers can tend to be related to much more personal matters. The list above covers the bulk of these reasons, though it really could include endless variations, such as the dog ate my invoice and so on. In this final piece of our three-part series, we will cover the best B2C late payment solutions that your business can utilize.
B2C Late Payment Solutions: What You Should DoPractice Frequency
In many ways, this will be your most effective tool. Frequency is the solution to a variety of B2C late payment problems. Don’t just send a single invoice to your customer and hope for the best. Instead, send and resend invoices on a regular basis. Once an invoice hits its due date, sending a weekly reminder is not unreasonable. Additionally, by sending regular reminders you can eliminate other possible late payment reasons such as, forgot to pay or lost the invoice. It may also provide you the opportunity to address incorrect invoices or unsatisfactory work.Invoice Promptly
Remember, the clock starts once you complete the work. The sooner you send your invoice, the sooner you can collect payment. If you delay your invoicing, your customer is likely to adopt the same lack of urgency. Often times, customers that receive a prompt invoice will reciprocate the gesture with a prompt payment.Simplify Payment Options
Make payment as simple as possible for your customer. The easier you make it, the more likely you are to get paid. Invest in the help of a good payments system that accepts online payments with credit/debit cards and direct bank debits. Allow repeat customers to set up auto-payments for even greater ease. Additionally, consider taking installment and deposit payments.Identify Terms in Advance
Communicate payment terms in advance of your work, specifically any fees or penalties for late payment. Late fees are an acceptable practice. However, be sure to check for any state specific rules and regulations that may apply.Confirm Delivery
Be sure to get the correct contact information for your customer, as well as their preferred method of invoice delivery, such as email or snail mail. Confirm this information and delivery method at the onset so that you do not experience bounced emails or errant mail.
Why Do B2C Customers Pay Their Invoices Late?Discounts for Prompt Payment
When dealing with B2C customers, there’s really no reason to offer discounts for prompt payment. Although this may be an acceptable practice with B2B customers in certain circumstances, consumers do not need or require any form of incentive to pay their bills.Getting Frustrated
Don’t resort to frustration or allow yourself to give up when it comes to dealing with late payments. Remember, it is not an uncommon occurrence to have a late paying customer. It’s human nature for people to put off tasks they view as tedious or burdensome. However, implementing payment automation solutions can get you paid without the hassle.
This article completes our three-part series for Why Don’t My Invoices Get Paid? If your business is experiencing late payment problems, consult these articles to determine your customer type, best available solutions, and potential pitfalls to avoid.