1. Encourage Your Customers to Pay on Time
How many days on average do you get paid?
The lower the number of days, the lower your Days Sales Outstanding (DSO). A low DSO has a positive impact on your cash flow. Therefore, encourage your customers to pay outstanding invoices earlier.
The best way to do this is through consistent debtor management. Ensure you remind your customers of outstanding invoices in a structured manner. You can do this by sending payment reminders at set times and by bringing the invoices to your customer’s attention as clearly as possible, for example via SMS or email. This ensures continuity in the debtor process and better payment behaviour from your customers: they know exactly when they will receive an invoice or reminder from you.
Tip: a different payment term ensures an invoice is paid faster.
2. Include an iDEAL Payment Link in Your Invoices and Reminders
To get paid faster and more easily, it is important to make it as easy as possible for your customer to pay their invoice. This barrier should be as low as possible. And nowadays, technology offers all the possibilities to make a payment with the click of a button.
In the Netherlands, iDEAL is the most common method of payment for online payment methods. Our analysis of over 1.8 million invoices shows that invoices with an option to pay via a payment link are paid 9 days faster.
That this really works is also noticed by Hanze University of Applied Sciences Groningen:
From the invoice, reminder, and online environment, students can pay directly with iDEAL, among others. The record for the fastest payment is now 17 seconds after sending the invoice with an iDEAL payment link in it!
3. Maintain Personal Contact with Your Customers
At Payt, we believe that the percentage of deliberate defaulters is minimal. Good debtor management often involves finding out the reason for non-payment.
Is the product not delivered? Does the customer have a complaint about your company? Or is there an error on the invoice? These can all be reasons for your customer not to pay the outstanding invoice.
Communication with your customers is very important to get paid faster. This will result in a shortening of the payment term and a reduction in the write-off of unpaid invoices.
All-in-One Solution
Smart debtor management is important and prevents customers from not paying their invoices at all or paying them much too late.
Payt’s debtor management software makes it possible to send invoices and reminders completely automatically. Payt reminds your customers of outstanding invoices in a structured manner. This positively influences your customers’ payment behaviour.
Payt also brings structure to communication with your customer. In the communication portal, the customer has the opportunity to leave a message per invoice. This way, you quickly know why a customer has not yet paid their invoice.
Payt makes it easy for customers to pay. The software makes it possible to add a payment link and direct debit to every invoice. This reduces the outstanding balance in almost every sector!
Curious about the different possibilities of the software and what Payt can mean for your organisation? Download our brochure.
