How to Charge Late Fees for Invoices?
Past due invoice transactions are a typical calamity. You finish the project, request to be paid, wait for weeks, and hear nothing from a client. That’s a real bummer. Now, what if you deal with multiple past due bills? This is sure to affect your income and overall ability to operate. Luckily, this unpleasant situation can be avoided. Keep reading for more vital details on the topic.
The invoice not paid on time is a tough situation you occasionally have to deal with as a small business owner. However, you can prevent it if you charge late fees on the invoices you send. To start implementing this highly effective strategy, you’ll first need to research the maximum invoice late fees by state. After that, inform your customers that you’re now charging for delayed transactions. Upon notifying your customers of your new late fee policy, include this information in the doc, too.
Invoice Late Fee Wording
‘Can I charge a late fee on my invoice?’ If this question has been lingering on your mind lately, let us soothe it and give you the answer. Yes, you can. And you should, for it will motivate your customers to pay swifter. Wondering how to word your invoices to prevent past due payments? Indeed, that’s a very important topic because your late fee wording on invoices can either stimulate or discourage your customers to get the transaction going your way ASAP. First, politeness is key. Always stay polite when it comes to the language of your financial documents. Second, be firm. Yet polite.
Here are some more tips to help you achieve that perfect balance:
- Find an invoice online template in our database and adjust it to look professional with the help of our invoicing tools. Be concise. After all, neglecting a wordy electronic invoicing notification letter is a lot easier than ignoring a professionally-looking, succinct doc.
- Incorporate a personal note. Just to remind your clients that you are real and appreciate your cooperation greatly. A simple ‘thank you for working with us’ or something like that will do.
- Include straightforward payment instructions. When working on your invoice-wording-for-fast-payment, explain to your clients clearly how they can pay you. If you offer your customers the possibility to pay online, you’re free to add a payment link to the invoice. You’ll be amazed how things like this speed up the process.
How to Deal With Late Invoice Payments?
You’ve done the work on time, which means you’re entitled to get paid. On time. Therefore, stop thinking you’re a nag whenever you have to chase (your well-deserved) money. In case you haven’t heard from a client for days after invoicing them, contact them. Don’t just sit and wait silently until… well, nothing happens. Follow up religiously. Politely. Yet firmly.
Last but not least, make sure you automate and digitize the whole process if you don’t want paperwork to drive you totally crazy. Start making the most of a solid online billing platform. This will save your time and money, allowing you to really shine at what you do best: bringing the cash in. So, if you’re looking for an invoicing template Word
or Excel, Saldo Invoice has got you covered.