0131 202 4107 info@swipen.co.uk

How can I encourage my customers to pay their invoices on time?

by | Jul 21, 2022

One of the primary challenges of running any business is managing your cash flow effectively. This is not always an easy task and customers not paying on time can make it even harder. Nearly half of all invoices are paid late, which is a staggeringly high figure, and chasing all these overdue accounts can be very time consuming.

Thankfully, Swipen has some helpful hints and tips, and our Virtual Terminal gives you several ways to encourage customers to pay on time, without compromising your relationship with them.

 

Make your invoices very clear:

It is important to ensure your invoices are very concise – they should contain the exact and up-to-date information about your payment terms, how much they owe you, when that amount is due, when it will be considered late, and any late payment penalties. It’s best to leave no room for misunderstanding.

 

Discount for early payment:

This is a great option if it suits your business. For example, a 5% discount if they pay within 7 days may encourage a customer to pay earlier.

 

Ask all brand new customers to pay upfront for their first order:

This works well if your business offers repeatable services or products. It gives you a chance to get to know a customer before you offer credit terms. It also gives you a chance to be introduced to the person in charge of paying your invoices, so you can build a rapport with them.

 

Offer payment in instalments:

Swipen’s Virtual Terminal allows you to set up recurring payments so customers can pay an agreed amount every week or month until settled. This can be a great incentive for a customer who otherwise wouldn’t be able to outright afford your product or service, or has been unable to pay your invoice in full as originally agreed.

 

Make paying your invoice easy:

Swipen’s Virtual Terminal allows you to send pay-by-link URLS and single-payment QR codes, which can be attached to emails or electronic invoices. Customers then have a variety of ways to pay, including card payments, open banking, Apple Pay/GooglePay or via a platform like PayPal. A single-payment QR code will also alert you to when the customer has received your invoice, when they’ve opened it and when it’s been paid.

 

 

Send regular reminders:

Life is busy and customers will naturally prioritise other things over paying your invoice. They may even simply forget. Regular and polite reminders are the best place to minimise forgetful or busy customers. Swipen’s Virtual Terminal can help you send reminder emails that contain an easy pay-by-link URL or single-payment QR code.

 

Apply penalties for late payment:

This may not suit every business, but it’s worth remembering that if, for example, you’re offering customers up to 30 days to settle an invoice, you are providing free credit. If they do not pay on time, unfortunately it may be necessary to apply a penalty. A 5% increase on the bill for every 7 days overdue can be an effective deterrent. Just make sure your payment terms are legally binding and any late payment penalties are made clear from the very first invoice.

 

Shorten the time you give to settle an invoice:

Sometimes, simply changing your payment terms from 30 days to 14 days can make a real difference. 30 day settlement harks back to the days of snail mail and payment by cheque. In the modern world, however, with electronic forms of payment making the cheque obsolete, there’s no reason why you shouldn’t be paid within a week or two. Almost 75% of invoices now request settlement within two weeks, so you won’t be alone.

 

Don’t break your own payment terms:

This can be the hard part. We all understand that sometimes it’s necessary to offer a customer a grace period in exceptional circumstances, and rightly so. But, in general, it’s important to stand by your payment terms.

 

Record everything:

Sometimes, even though you’ve done everything right, you may have to turn your customer over to a debt collector or lawyer. Ensure you keep detailed records of all invoices, emails, and phone calls to and from your customer to make your case is as airtight as possible.

 

 

Most businesses will spend around 10% of their time generating, sending and chasing invoices. If you’re a small business, you may even be left doing this yourself. Having an efficient system and payment terms that work for you can make all the difference. It frees you up to do what you do best, and what’s good for you is good for your business.

Find out more about Swipen’s Virtual Terminal here or contact us for a more detailed chat.

We knew there was a better way and so we created Swipen.

 

 

 

Back to previous Payments Parlance post – Reducing Chargebacks and Fraud

 

Recent Articles

Swipen is celebrating its third anniversary!

Swipen is celebrating its third anniversary!

Swipen is three years old! Our first three years have certainly had their ups and downs. From our launch in August 2019 and into a global pandemic, to becoming a multi award-winning company. Through it all, I’ve always known Swipen would be one of the best payment service providers (PSPs) in the country. But, I’m not going to wax lyrical about our successes over the past three years (you can look back over our other blogs for all the great news). Instead, I’d like to take this opportunity to introduce you to the key team behind Swipen.

Best Industry Newcomer & MD of the Year!

Best Industry Newcomer & MD of the Year!

We attended the Card & Payments Awards as a Category Finalist for the Best Payments Industry Newcomer award. We were delighted to be awarded a Highly Commended trophy as the industry newcomer to watch! We received more good news. Our illustrious leader, Fraser Mitchell, has been awarded the SME News ePayments Managing Director of the Year for 2022! “As an MD, I want to run a business I can be proud of. I don’t ever want Swipen to be successful at the expense of our customers or staff. The biggest compliment we receive from clients and partners is that we do what no one else does.”

How do I reduce chargebacks and fraud?

How do I reduce chargebacks and fraud?

Welcome to part three of Swipen’s ‘Payments Parlance’ blog series. Acronyms, techspeak, compliance, and seemingly random fees can leave us all confused and...

We’re now officially trademarked!

We’re now officially trademarked!

Over the last few months, we have been working on registering our Swipen logo with the Intellectual Property Office (IPO). We have always been very proud of...

Integrated Payments - connecting your till to your terminal

Integrated payments - connecting your EPOS till to your card terminal - enables your business to process payments faster and increase your profits.

There are many benefits to an integrated solution for almost all business types, most importantly, the removal of human error, giving you accurate reporting from all tills and terminals.

At Swipen, we offer Integrated Payments free of charge and you can use our Pay at Table or Pay at Counter software, or both if it suits your business:

Pay at Table

A software design with restaurants in mind:

Split the bill at the table

Automatic table closing

Integrated gratuity & reporting

Turn tables faster

More efficient payment

Pay at Counter

Suitable for most businesses, offering:

Faster payments

Shorter queues

Better conversion

Greater profits

COVID secure

Discover which terminal type is best for your business

Portable

Restaurants

Pubs

Cafes

Countertop

Bars

Clubs

Takeaways

Retail & Shops

Take your payments to the next level

E-Commerce Payment Solutions

With the arrival of Covid-19 into all our lives, online only payments are looking to have a bright future that’s here to stay.

At Swipen, we want to bust the myth that taking payments online is complicated, and help you
adapt to this changing world.

We offer two types of E-Commerce payment solution either directly integrated with your website or a hosted payment page.

Directly Integrated

Integrated into your own website

Completely customisable

Branded to your business

Customers stay on your website

150 currencies supported

Shopping carts

No long-term contract

Alternative payment methods, including: Alipay, Apple Pay, Google Pay, WeChatPay

Hosted Payment Page

Easy to set up

Take payments in minutes

Swipen branded

Data processed by Swipen

150 currencies supported

Shopping carts

No long-term contract

Alternative payment methods, including: Alipay, Apple Pay, Google Pay, WeChatPay

Take your payments to the next level

Virtual Terminal - Taking Payments over the Phone

Many businesses find it useful to take payments over the phone, whether you’re a travel agent
needing to take deposits, a mobile tradesperson, travelling salesperson, you have a call centre, or you don’t have a website to take payments online.

Swipen’s Virtual Terminal allows you to take card payments over the phone quickly and securely.

Our solution is a web portal that can be used on a desktop, tablet or mobile device.

Virtual Terminal Key Features

More secure than a card terminal - Completing the payment over the phone with full customer details reduces the risk of chargebacks or fraud.

Pay By Link - Send a payment link to complete the purchase or pay a balance. This is also a useful feature for customers who prefer to not give their details over the phone.

Capture Customer Details - The Virtual Terminal allows you to capture all the customer details you will need for your CRM or Booking Systems reducing the need for double inputting.

Control Permissions - Restrict user access to only certain functionality so you can control what your staff can process and see.

Take Payments anywhere - The Virtual Terminal is compatible to all devices and allows you to take payments from anywhere - office, home or on the move in a safe and secure way.

Ideal for call centres, travel agents, travelling salespeople, mobile tradespeople, restaurants for pre-bookings and parties, hotels for rooms and events, or any business that doesn’t have a website that customers can pay through.

Take your payments to the next level

Web & App Solutions - Order and Pay-at-Table Platform

With COVID regulations in force across the country, restaurants and pubs are adjusting the way they work to reduce the spread of this virus.

Swipen are also adapting to these changing times, and working with our expert partners, we can now offer order and pay-at-table platforms, allowing you to benefit from cashless and cardless payment options.

Our solutions can be either Web or App based and we provide the choice between
a ‘Simple Solution’ and a ‘Bespoke Solution’, depending on the size of your business

Bespoke Solution

The best option for individual pubs and restaurants, small chains, or if location offers a different menu:

Use your own branding

At table QR code or WiFi login

Bespoke rates and fees

Links to your EPOS till *

*Depending on the EPOS company

Simple Solution

Ideal for larger chains where every location requires exactly the same functionality and offers the same menu:

Custom built to fit your business

Customers can access the way you want

Links to both your till and kitchen

No training required

Working with Pizza Hut

Swipen have helped create a bespoke value-for money solution for Pizza Hut, and we could do the same for you.

Get in contact to find out more.

Take your payments to the next level

Tip Per Tap -Contactless Tipping System

With the dawn of cashless and touchless checkouts along with app ordering systems and pay online methods, many restaurants, bars, cafés and hotels are finding that their waiting staff are no longer able to receive cash or card tips.

Swipen has the perfect solution: the new ‘Tip Per Tap’ Contactless Tipping System

Directly Integrated

A dedicated terminal is placed in a prominent location in your restaurant.

The terminal is set to ‘donation’ and the debit amount is set at a specific figure. e.g. £2

Your happy customers simply tap their card, phone or watch against the terminal to leave a £2 tip.

They can tap multiple times to leave a larger amount

Works automatically without the need for a member of staff to supervise.

End-of-day report is separate, making it quicker and easier to share the total tips received between staff members.

How about a little Tip Per Tap

Read our blog all about our new Tip Per Tap Contactless Tipping System.

Get in contact to find out more.

Take your payments to the next level