7 Ways to Encourage Clients to Pay on Time
Try these easy tips and strategies to help your customers make prompt payments
If you’re finding it difficult to get your customers to pay invoices on time, it’s worth adopting a few simple tricks. We asked renovation professionals on Houzz to share the strategies they use to encourage their clients to stay on track with payments.
2. Keep the Scope Crystal Clear
It’s also vital to be open about who and what will be involved in the project.
“This is especially important on large refurbishment projects, as clients can feel overwhelmed by the number of trades involved and who’s responsible for what,” Endres-Castillo says. “A well-defined scope helps avoid confusion around deliverables and payments.”
It’s also vital to be open about who and what will be involved in the project.
“This is especially important on large refurbishment projects, as clients can feel overwhelmed by the number of trades involved and who’s responsible for what,” Endres-Castillo says. “A well-defined scope helps avoid confusion around deliverables and payments.”
3. Draw Up a Contract
It’s a good idea to get everything in writing to avoid problems with payments down the line.
Natascia Fileppi of Interia Design recommends a formal contract. “Always have a signed contract before you start a project, with payment milestones simply and clearly laid out with the amount or percentage due at each stage,” Fileppi says. “Highlight that prompt payment ensures we can start and continue working on the project. We store all our signed contracts on Houzz Pro under the specific project.
“Confirm any agreed additional charges in writing,” she adds. “This ensures clarity and reduces uncomfortable conversations and delays.”
Learn about Houzz Pro business software
It’s a good idea to get everything in writing to avoid problems with payments down the line.
Natascia Fileppi of Interia Design recommends a formal contract. “Always have a signed contract before you start a project, with payment milestones simply and clearly laid out with the amount or percentage due at each stage,” Fileppi says. “Highlight that prompt payment ensures we can start and continue working on the project. We store all our signed contracts on Houzz Pro under the specific project.
“Confirm any agreed additional charges in writing,” she adds. “This ensures clarity and reduces uncomfortable conversations and delays.”
Learn about Houzz Pro business software
4. Devise a Clear Invoicing System
An invoicing process that’s efficient and easy to understand will ensure the client doesn’t misunderstand payment dates and amounts.
“We use the Invoicing tool on Houzz Pro,” Fileppi says. “It’s really easy, as it shows the due date, amount, payment QR code — if you choose — part payment option, line descriptions of services and images of items purchased.”
Houzz Pro Online Payment software helps you get paid faster and automates the payment process.
6 Pro Tips for Maintaining a Steady Cash Flow
An invoicing process that’s efficient and easy to understand will ensure the client doesn’t misunderstand payment dates and amounts.
“We use the Invoicing tool on Houzz Pro,” Fileppi says. “It’s really easy, as it shows the due date, amount, payment QR code — if you choose — part payment option, line descriptions of services and images of items purchased.”
Houzz Pro Online Payment software helps you get paid faster and automates the payment process.
6 Pro Tips for Maintaining a Steady Cash Flow
5. Offer Installments
A remodeling project is a big outlay for clients and many will feel overwhelmed by the costs. Bear this in mind when you’re setting up payment schedules and perhaps find ways to make it easier to pay.
“On larger projects, we offer monthly installments, which appeal to clients as they’re paying smaller amounts regularly,” Fileppi says. “This approach means it’s especially important we provide weekly status reports — including issues, delays and resolutions — against the project plan.“
A remodeling project is a big outlay for clients and many will feel overwhelmed by the costs. Bear this in mind when you’re setting up payment schedules and perhaps find ways to make it easier to pay.
“On larger projects, we offer monthly installments, which appeal to clients as they’re paying smaller amounts regularly,” Fileppi says. “This approach means it’s especially important we provide weekly status reports — including issues, delays and resolutions — against the project plan.“
6. Build a Relationship of Trust
It’s vital to develop a good relationship with your client so there’s trust on both sides.
“Clients usually respond better to a warm, personalized message than a generic invoice reminder,” Endres-Castillo says. “A quick check-in to see how they’re getting on can go a long way. When clients feel looked after and informed throughout the project, they’re far more likely to pay on time.”
How to Explain Price Increases to Clients
It’s vital to develop a good relationship with your client so there’s trust on both sides.
“Clients usually respond better to a warm, personalized message than a generic invoice reminder,” Endres-Castillo says. “A quick check-in to see how they’re getting on can go a long way. When clients feel looked after and informed throughout the project, they’re far more likely to pay on time.”
How to Explain Price Increases to Clients
7. Give Polite Prompts
Once you’ve established trust with your client, it’s probably safe to assume they have the best intention of paying on time, even when they miss a payment.
Auzins says, “Only once have I ever had to arrange a payment schedule because things were tight. But it was paid in the end.”
Tell us: How do you ensure prompt payment? Share your experiences in the Comments.
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Talk with your peers in the Houzz Pro Forum
Once you’ve established trust with your client, it’s probably safe to assume they have the best intention of paying on time, even when they miss a payment.
Auzins says, “Only once have I ever had to arrange a payment schedule because things were tight. But it was paid in the end.”
Tell us: How do you ensure prompt payment? Share your experiences in the Comments.
More for Pros on Houzz
Read more stories for pros
Browse millions of photos for inspiration
Learn about Houzz Pro software
Talk with your peers in the Houzz Pro Forum
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Don’t be afraid to talk about fees and payments with your clients, even if you feel awkward.
“Be very clear about invoices and payment schedules,” says interior designer Anna Auzins. “Mine are always payable upon receipt.”
“I always ensure there are no hidden fees or surprises along the way,” says Johanna Endres-Castillo of Speaking of Interiors.