Small business owners: How do you get paid quickly?

I think this is helpful. It tracks how invoices request payments, and how quickly the payments, on average, actually come in.

It seems that you’re actually getting an average turnaround on your payments. If you’re dealing with businesses, and realize that they have to go through a couple of levels of processing for their books, and that often these may only be done on certain days, etc. It seems like you’re dealing with individuals, so you’re right. But also note that people also pay bills often on a monthly-cyclical basis.

You might be able to get them to pay faster – but I don’t know if it’s worth it. Your business should be able to run easily based on this pay schedule in order for you to even start about thinking of leaving your steady income job, I would say.

In the business world not the consumer world “Thirty days is normal”

What you can do is offer a 5% discount ( restructure your pricing 5% higher) for same day payment.

I’m in the same boat, things that have helped me

- use an invoicing service to make it super easy to invoice and lower the workload on you – I like Harvest, but most of my work is online, so I have email addresses handy, if you’re dealing with people face to face there may be better solutions for you
– follow up, at about 7 days I super politely just say “hey, just following up on that invoice, let me know if you have any questions” – again email helps here so your technique may vary
– People actually seem to like using paypal to pay, I don’t dig it because it takes so long to get money out and into my bank account, but at least you know where it is and when you’ll have it
– Thank you cards are much appreciated, I need to get so much better at this but people always feel attached to you when you send them
– make it as easy as possible to pay you before those other guys
– bill as soon as you can after work is done
– give a due date, but be flexible and always include your contact info on any reminders

If you’re handing a computer over to them, are you giving them an invoice right then? Are they mailing payment? If so, are you giving them an addressed and stamped envelope? Maybe develop a little package or folder that you give them. Inside is the invoice, the envelope, and your card. Maybe a sticker for the side of their computer? Some handy tips printed out? A breakdown of what you did to fix the problem? Really anything can go in there.

Have you seen things like Square where you can take payments with a credit card right away? If you’re visiting offices this might be a good way to go.

Billing is my list favorite part of being in business, so I’m working on making it something I’m proud of rather than dreading. Not there yet, but learning a lot as I go.

@funkdaddy I have been using freshbooks for invoicing and yes I do have a square reader so I can take credit card payments.

I do email the invoice as soon as I am done with the work. I considered also printing it and giving it to them when I return the system but one of the practices I am doing is to be 100% paperless.

@iamthemob I know that I should be able to sustain myself on that pay schedule and I hope to get that point. But my concern is that when I do a main lunch, I will go into that with money in savings to sustain me… but when that depletes.. I have to know I have money coming in at a certain time.. I can’t be wondering if I’ll get paid.

My industry has a very similar payment cycle. There are two methods I use to bring the money in faster at times. One is to offer two prices a typical price and than a slightly discounted price if payment is made within five days of billing.

The second is all about pre-negotiation. When they are asking me to get around to helping them fast or getting there job done fast I ask for payment upon delivery. Or you could just make it standard, but if its different than competition you will need to notify them that payment is expected in ____ days of delivery printed standard on the bill and especially telling them up front.

Hope this helps.

30 days to pay is on time. If you want them to pay sooner, offer a 2%/10 net 30 option. If they pay within 10 days, they can deduct 2% from the bill. Otherwise, it’s the full billed amount. Make sure you structure your cash flow so that you are able to cover your expenses from a cash reserve for up to 60 days. If there are material expenses involved, pre-bill people for out-of-pocket costs.

These guys are right—30 days is standard, but I know it can be tough to meet expenses when you don’t have a lot coming in. Good luck!