Nobody likes to get paid late. Chasing after customers for payments can feel awkward and takes time that you could be spending on other things. Plus, late payments have a negative impact on your cash flow.
Getting paid on time and maintaining a healthy cash flow is how a business survives. Afterall it takes money to keep the doors open, employees paid and the lights on. According to a recent survey*, 62% of small businesses don’t think they could survive more than three months if their outstanding invoices were left unpaid.
The easier the payment method is the quicker your customers are most likely to pay you. Bringing a great experience to your customers from beginning to end should be a high priority for every business. A difficult or technical payment process will only encourage those who owe you to put it off for longer. So if their preference is to use Stripe or PayPal, then why not let them!
Adding payment services directly to your Xero online invoices gives your customers more ways to pay you. Xero data shows that customers with a ‘Pay Now’ button to take credit card payment with Stripe or via Paypal can get paid up to twice as fast as invoices without a payment option.
Once you’ve signed up with one of the supported payment services, your customers will be able to pay immediately when they receive an online invoice – they simply click the Pay Now button, enter their credit card details and voila – invoice paid. And don’t forget to follow up outstanding invoices with automatic invoice payment reminders.
Make it easy for your customers to pay you. It’s a win win! Your customers are more likely to have a great buying experience from start to finish and you get to see your money sooner.
For more details about the survey, and for more advice on tackling late payments, visit www.xero.com/au/cashflow-gap