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Crisis Survival Kit: 10 Ways To Get Paid Faster

With credit evaporating, cash is king. For business owners, the pressure to keep the cash flowing makes getting paid for outstanding invoices even more crucial than before. Don't get left holding an unpaid invoice.
With credit evaporating, cash is king. For business owners, the pressure to keep the cash flowing makes getting paid for outstanding invoices even more crucial than before. Don't get left holding an unpaid invoice.Mike McDerment, the CEO and founder of FreshBooks, an online invoicing and time-tracking service has offered 10 tips for getting your outstanding invoices paid faster. Though he's promoting his firm's solution, McDerment's tips aren't specific to a particular invoicing system.

  1. Bill Early -- When wrapping up a project, send your bills out immediately.
  2. Bill Often -- A constant reminder of a payment due will increase your chances of actually receiving it!
  3. Track Your Time -- Document your work time accurately to ensure that you are fairly compensated for your efforts.
  4. Charge an Upfront Retainer Fee -- Requesting a retainer fee upfront provides a cushion while you are working on another job.
  5. Take Advantage of the Moment -- During the planning stages of a project, most people are excited and tend to be more flexible. Use this opportunity to request a partial payment.
  6. Set It and Forget It -- Don't waste billable hours on invoicing. Establish recurring billing and invest your time elsewhere.
  7. Set Automatic Late Payment Reminders -- Establish a system that will inform you and your clients of late accounts; the sooner that you are aware of a delinquency; the sooner you will receive payment.
  8. Make a Good Impression -- The public's perception of you will dramatically affect the way that you do business. Providing good customer service demonstrates that you are a professional and you will get paid accordingly.
  9. Make Billing as Easy as Possible -- If you make bill paying difficult, you are guaranteed to lose money. Try to provide debtors with easy, convenient options to submit payment.
  10. Keep Your Records Up to Date -- Confirm that all bills reflect the current balance and are sent to the right party. Customers are more likely to avoid payment of inaccurate bills.

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