5 Ways to Get Paid Faster

Getting customers pay on time is one of biggest challenges for entrepreneurs as the economic recovery drags . And when the problem persists long, it can ultimately shut your small business.

Dawn Fotopulos, small business consultant and founder Bestsmallbizhelp.com, addressed this financial headache business owners the New York Times Small Business Summit this week in New York. are her best five tips for getting paid faster.

1. Send invoices ASAP. It is too common for business owners to finish their work a customer and neglect to submit a bill. "You can't believe slow small business owners are getting their invoices out," Fotopulos says. "And the truth is the client has obligation they receive the invoice."

2. Explain every charge. Don't send your customer an invoice only a dollar amount on it. Itemize everything the customer bought or every service you provided and highlight discounts given. For example, Fotopulos charges non-profits less consulting services than she for-profits. When she sends an invoice a non-profit, she indicates what it would cost at the for-profit rate. "When that client signs check, they excited to sign that check, they know exactly they are signing that check and they know how much value they received," she says.

3. deadlines crystal clear. Don't allow the opportunity any confusion. You need to tell your client he or she signs the initial contract how much time they have pay you. Also, reiterate your policy both the billing invoice and packing slip. "It needs to be so there is no ambiguity to when that bill should be paid," Fotopulos says.

4. More invoices smaller amounts. If , you want to avoid hitting your client with one, giant bill. A client is likely to sit on a bill is overwhelmingly large. " it easier for the client to pay you," Fotopulos says. Also, by getting paid small, frequent increments, you protect your business losing a lot of money should your client belly-up while they are sitting an unpaid invoice.

5. a personal connection. "We a lot of time in sales schmoozing the person signs the purchase order, but absolutely time getting to know the person who is going cut the check," says Fotopulos. She suggests sending a handwritten thank- note on a fairly regular . The next there is a bottleneck in the payment schedule your client, the accountant will remember you. "When they see your invoice through, you are not just another vendor," she says.


Adapted from: entrepreneur.com, June 27, 2012.