Is it normal to wait a long time for a payment? Or that reminders are only sent after the due date? Although cash is a crucial element for business operations, almost all CFOs make these 3 thinking errors. Which one do you make? Payt helps you overcome the thinking error and offers a solution.
More control and less work. Even in your industry.
Fast and secure invoice processing for every organization.
Fast and secure invoice processing for every organization
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Long waiting for a payment is normal
Waiting 60 days for an invoice can feel normal, especially knowing that in the Netherlands only half of the invoices are paid within the set payment term.
"That long wait is just the way it is" doesn't have to be the norm. You have various options to shorten the time until payment and you have more influence on your debtors' payment behavior than you think! For example, by consistently sending reminders and offering individual payment arrangements. With the automation of your debtor management, you also spend less time on it.
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Reminders are only sent after the expiration date
In most standard processes, the reminder for an invoice is only sent after the due date. This can be shortly after or even much later, such as a quarter later. A customer who only receives a reminder then has to dig deep into their memory to recall what it was for. As a result, your customer is less likely to pay promptly.
In practice, it turns out that many customers—both in B2C and B2B—appreciate a reminder. Anyone can forget an invoice. If you send the first reminder before the due date, you increase the chance of receiving the payment quickly.
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Invoicing is not a game
That invoicing is crucial for your organization doesn't mean you can't see it as a game! People are naturally competitive beings who want to win in games. That's why using game techniques in a non-game environment works so well. Add a game element with rewards for the accounts receivable team.
For example:
- Can your team improve the speed of payment?
- Who knows how to reduce the number of reminders to debtors without compromising payment speed?
- How many reminders are sent on time after the invoice is issued? Can you reach 100%?
Bonus misconception: Invoices have been the same for years, they have never been consciously adjusted
In the early (growth) years of an organization or the initial period of a new financial employee or manager, the invoice template is still adjusted. However, it often falls into a rut afterward… By regularly reviewing your invoice template critically, you help your customers pay faster.
Consider, for example:
- Offering multiple payment options and new payment methods. Which option do your customers prefer? Indicate this as the preferred option.
- The language used in your invoices. Communicate crystal clear about the payment, so debtors don’t have to guess what it’s about.
- Ensuring that essential components – name, address, your account and VAT number, amount, and payment term – are correct and clear.
