Set Expectations Before the Job Starts
Payment problems usually start before the work begins. If you do not clearly communicate your payment terms upfront - when payment is due, what methods you accept, and what happens if payment is late - you are setting yourself up for problems.
Put your payment terms in your estimate and review them with the customer before work starts. No surprises means fewer disputes.
Invoice Immediately After Completion
Every day you wait to send an invoice is a day you are lending the customer money for free. Invoice the same day work is completed or as soon as the milestone is reached.
The longer you wait, the less urgency the customer feels. Send the invoice while the value of your work is still fresh in their mind.
Make Paying Easy
If the only way to pay you is to write a check and mail it, you are slowing yourself down. Accept credit cards, ACH transfers, and online payments. The easier it is to pay, the faster you get paid.
Yes, there are processing fees. But getting paid in two days with a small fee beats getting paid in 45 days with no fee.
Follow Up Systematically
When a payment is overdue, follow up immediately. Not aggressively - just consistently. A simple reminder at three days, a phone call at seven days, and a formal notice at 14 days.
Most late payments are not intentional. People forget, get busy, or misplace the invoice. A polite reminder usually solves it.
Platform Solution
How myCT1 Business-in-a-Box Solves This
myCT1 automates your invoicing and payment collection process. Generate invoices from completed jobs with one click, accept online payments directly through the platform, and set up automatic payment reminders for overdue balances.
The customer portal makes it easy for clients to view and pay invoices online. QuickBooks integration keeps your books updated automatically. The reporting dashboards show outstanding receivables so you always know who owes what.