Late Client Paying Invoice? Know the Causes and How to Overcome Them

Invoice is a billing document that has an important role in the continuity of a business. Even so, late payment of invoices actually still often happens and of course for various reasons.

As a collector, of course, there are disadvantages when clients are late in paying invoices, one of which is the hampering of the company's cash flow.

Common Reasons For Clients To Pay Invoices Late

Haven't Received an Invoice

Although it seems classic but this reason is the reason most often said by clients.

Two possibilities that cause the client to have not received the invoice include the collection party sending the invoice to the wrong address or the invoice being tucked away due to a less systematic administrative process on the client's part.

Does Not Include Purchase Order Number

The inclusion of the purchase order number is very important in an invoice.

This is because the purchase order number is a benchmark in the checking process before the client finally makes a payment.

Generally, the client will match the items in the purchase order with those in the invoice.

So that if the purchase order number is not listed, the client will need more time to check the suitability of the invoice.

In fact, some companies can apply for invoice revisions to complete invoice number information.

Late Payment of Bills Due to Unclear Invoice Details

It should be understood that in creating an invoice there are several main components of an invoice that must be included.

Some of them are invoice number, invoice date, bill due date, purchase order number, details of goods including quantity and price billed and so on.

The clearer the invoice you make, the easier it will be for the client not to be late in paying the invoice, aka on time.

Clients Also Haven't Gotten Payment

Have you ever made a bill and then the client replied "Sorry, you are also still waiting for payment from our client"

This kind of thing is actually unethical to say, considering that your relationship is only with the client in question.

However, as a businessman, of course, you can understand the condition of the client at that time who is also waiting for payment.

Tips So That Clients Are Not Late Paying Invoices

Here are some tips to prevent clients from paying invoices late, including:

Make Sure the Client Has Received the Invoice

As discussed earlier, one of the reasons most often said by clients who have not paid the invoice is that they have not received an invoice from you.

For this reason, it is important for you to do 2 things when you want to send invoices to clients, namely make sure the recipient's address matches either the work address or the email address.

Then, make sure to follow up to make sure they have received the invoice.

If the invoice is sent physically, then complete it with a receipt and make sure the recipient includes the name, date and signature.

If sent via email, make sure the recipient of the invoice replies to the email and if there is no reply, send a follow-up email until they reply to the email.

This is just in case the client claims that he has not received the invoice when the invoice due date has arrived.

Enter the Purchase Order Number

Carrying a purchase order number not only helps the client in facilitating the checking process, but also helps ourselves so that invoices can be paid on time.

You can add the purchase order number at the bottom of the item details table or outside the table.

There is no mandatory position where the purchase order number should be placed, the most important thing is that the purchase order number is listed on the invoice.

In addition, if in the process of sending goods you include a receipt or road letter, don't forget to attach a copy of the receipt or road letter when sending the invoice.

The more supporting documents for billing, the faster the check that causes the invoice to be paid according to the due date.

Create Invoices in Detail and Clearly

Make sure the invoice you create includes important components in the invoice.

To make it easier for you to create invoices, you can take advantage of several websites that allow you to create invoices online.

There are many websites that offer these services and you can choose free or paid ones according to your needs.

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