Payment Due

Tips for getting paid promptly

By Paul DeCeglie

Opinions expressed by Entrepreneur contributors are their own.

Business Start-Ups magazine, February 1998

Invoicing can pose problems and adversely affect cash flow for entrepreneurs when it's not handled properly. Try these tips to make sure you get what's coming to you.

The optimum time to bill customers is as soon as it's practical and convenient for you to do so. If you're in a service business, bill your client the day the service is completed--even sooner if you incur substantial expenses along the way. If you ship products to customers, include the invoice with the shipment.

The design of your invoice plays a role in how quickly it's paid. The form should have a professional appearance with the word "invoice" clearly printed near the top. Your name, or the name of your company, your mailing address and your telephone number should be prominent on the form.

Address the invoice to the person responsible for remitting payment. Name or describe the product or service on the invoice; specify the exact charges for each item; clearly state the total of the bill; and identify the person who placed the order.

To speed payment, state: "payment due on receipt. " To further expedite payment, consider offering a discount if paid within 10 days or, conversely, state that you will charge interest or a penalty if the bill is not paid within 15 days.

On large orders or long-term projects, arrange for payment up front or for partial payments as deliveries are made or work progresses. Put payout details in writing and have the agreement signed before you begin.

Paul DeCeglie is a former staff reporter for Journal of Commerce and American Banker. He can be reached at MrWritePDC@aol.com

Editor's Pick

This 61-Year-Old Grandma Who Made $35,000 in the Medical Field Now Earns 7 Figures in Retirement
A 'Quiet Promotion' Will Cost You a Lot — Use This Expert's 4-Step Strategy to Avoid It
3 Red Flags on Your LinkedIn Profile That Scare Clients Away
'Everyone Is Freaking Out.' What's Going On With Silicon Valley Bank? Federal Government Takes Control.
Leadership

How to Detect a Liar in Seconds Using Nonverbal Communication

There are many ways to understand if someone is not honest with you. The following signs do not even require words and are all nonverbal queues.

Business News

'Things Will Go Wrong.' Google Releases Its Chatbot Bard With Caution.

The AI-powered search tool went live today to a limited number of users in the U.S. and the U.K.

Business News

These Are the Most and Least Affordable Places to Retire in The U.S.

The Northeast and West Coast are the least affordable, while areas in the Mountain State region tend to be ideal for retirees on a budget.

Business News

Carnival Cruise Wants Passengers to Have Fun in the Sun — But Do This, and You'll Get Burned With a New $500 Fee

The cruise line's updated contract follows a spate of unruly guest behavior across the tourism industry.