Sure, you hope all your outstanding invoices are paid on time. But you constantly get reality checks, proving the opposite. As you know, cash flow is king. So, you probably have methods to remind late payers by using old traditional tools and processes, which are both time and money consuming. But there’s a way out. Ready to discover how?
How most companies are chasing unpaid invoices
All your competitors are facing the same challenges as you. But they are using old legacy ways of informing their clients about an outstanding invoice. They hire accounting administrators to send e-mails, letters, or to call their customers. That’s costly. Not to talk of the fact that their efforts are ineffective. As a result, they also pay a considerable amount of legal costs, just to get their money. But you can be a lot way smarter, right? With SMS reminders, you can have a true competitive advantage, while reducing costs and improving cash flow. Too good to be true? Not really.
“Hi, your invoice is overdue”
One of the simplest ways to send out payment reminders is by SMS. With automatic, personalised SMS messages, you make sure your customers are informed when their bill is overdue. Because SMS has a 97% open rate and a high remembrance rate, your customers are more likely to act upon your request: paying their bill immediately. That’s what we implemented for VOO, for example.
“Hi, do you want to get ahead of your outstanding invoices?”
A pro-active way of improving your cash flow is to contact your customers about their bill early. You could for example send out an automatic SMS to your customers as soon as your invoice leaves the door. In that way, you will improve the speed of payment, which will boost your cash flow. You could also offer your customers an incentive – like a small refund – when they pay early. That’s probably the most effective way to make sure your customers pay their bills immediately.
“Hi, do you want to save money?”
Unpaid invoices always come with extra costs. Not only for you as a company, but also for your clients. They might have to pay extra administration fees and other costs, to compensate for their negligence. But that puts the relationship between you and your customers at stake. There is a thing called a direct debit order. In that way, your customers don’t have to think about paying their bills, as the money they owe you are directly debited from their bank account. You could use SMS to inform your customers about it, and to engage them to take the necessary steps. It’s a win-win situation.
As you can see, there are many solutions for recovering unpaid invoices. The most important is to analyse which method will save time and reduce the number of unpaid invoices for your company. Not sure which tool to start with?