An invoice is one of the most powerful credit management tools at your disposal. An invoice is a document responsible for your business getting paid. With late payments being a major problem for UK SME’s, it is crucial that the invoices you are sending out are effective. The goal is to get paid on-time with as little disruption as possible, a well-designed invoice with all necessary information will put you in the best position.
It’s clear that providing an invoice where all of the information is correct is more likely to be paid on time. Invoices need to be correct, for both parties, if they’re not then it can cause havoc with record keeping. Firstly, include all your business information, business name, contact information, logo, the client should be able to recognise who the invoice is from straight away. Make sure you get the client address and the name of your contact correct. Anything less and you will look unprofessional, and that will damage your relationship. On top of looking like an amateur, the client will also need a correct invoice for their records, costing you time and resources.
Be as specific as possible without waffling. The client may need a reminder of the product/service that you provided. Your client will receive numerous invoices every month; you can’t expect them to remember exactly what you did (no matter how good you think it was). An explicit invoice will not raise any questions and will improve your chances of being paid on-time.
This may seem obvious, but it is a very common mistake. Make sure that the price of the invoice is correct! If it’s the wrong price, the customer won’t pay, and this includes VAT too. Any discrepancies with the price and again, you will look incompetent.
The more methods of payment that you offer, the more chance you have of receiving payment. Make bank details clear and obvious, if you accept cheques then make it clear who they should be made out to. If you accept PayPal or any other online payment then include a payment link, this makes it easier for the client to pay and a direct link makes it more likely that they will do it immediately. Include the expected payment date
When it comes to invoices, the simpler it is then, the better your results. Late payments are plaguing UK businesses, and there is only so much that a quality invoice will do. If you are struggling with late payments then Commercial Domestic Investigations can help, from credit reporting to invoice collection we can help you to reduce the damage that late payments do to your business. To find out how we can help you, contact our team on 08444 159 200, use our contact form or email firstname.lastname@example.org.