NET 30, EOM, 15 MFI, Upon Receipt and more are all terms that you can use to encourage your clients to pay on time.
Past-due invoices do nothing but cause you stress take up time.
Tuts+ has put together an amazing article that goes into incredible detail to help you get paid on time.
While it may not be possible to completely avoid them, there are methods that you can use that will help reduce our amount of past-due invoices – it’s all about understanding how your clients work.
“If You Want to Get Paid in a Month, Ask to Get Paid in 13 Days
A study of over 12 million business invoices by Xero revealed that on average, clients pay about two weeks late, regardless of the payment terms chosen.
That implies that whichever payment terms you choose, you should add on another two weeks to estimate the actual date of receipt. Xero’s data showed that if you want to get paid within 30 days, you should specify payment terms of 13 days or less.
The Wording Matters
A separate study by FreshBooks found that simple changes to the wording used on invoices can result in faster payment. For example:
A simple “please pay your invoice within” or “thank you for your business” can increase the percentage of invoices that are paid by more than 5 per cent!
Also, some of the terminology we covered in the last section is not as effective as simpler language. Writing “30 days” instead of “Net 30”, for example, resulted in faster payment of invoices. If you want people to take an action, asking them in a completely clear way is usually a good idea.”
Read the entire article at Tuts+.