Getting paid faster as a contractor can feel like pulling teeth at the best of times — and it’s often easier said than done. This is especially true given that in Australia, on average it takes about 26.4 days for an invoice to be paid which can keep small business owners and solopreneurs from making business related payments on time themselves. All of this makes overdue invoices a thing that is all too normal. Thankfully, there are plenty of simple ways that everyone from contractors to subcontractors can start doing today to get paid faster while reducing your wait time for payments. Let’s take a look at five of the top ways that will help you to get paid faster as a tradie.
1. Set Up Automatic Payments
Automated payments can be a great way for tradies to get paid faster. An automated payment happens when a client integrates a payment service with their payment provider. That way, when a project is paid, the client will be directed to the contracting service’s account.
This can be a helpful way to squeeze out just a little more time between paychecks or to get paid as soon as you have received your first payment. Presenting automatic payments to clients is a way to secure what you’re owed ahead of time and will take the worry factor out of your next project.
2. You’ll Want To Establish Trust With Prepayments
A common issue with getting paid faster, especially for tradies, is not seeing the money upfront before getting started. Establishing an agreement for pre-payments will open up space for planning since you will have a portion of the money before the project starts.
3. Start Enabling Auto-Reminders
Automated reminders will act as a nudge for payment so that you don’t have to. What’s also great is that many payment platforms offer the capability to add more than one payment reminder onto purchases and you can often customize them as well. Setting this up will allow your client to be reminded without you having to hassle them and will send a reminder for when the payment is expected.
4. Incentivize On-Time Payments
Sometimes, people just need an incentive when it comes to being on time. Establishing a clear incentive for those that pay their invoices on time could increase your client relationships and spark excitement about getting something free with their purchases. You could offer a percentage off of their next booking with you or you could offer an upgrade from a current service. Offering an incentive to people has shown to increase rates of participation by 22% so it can’t hurt.
By implementing at least one of these routes to faster payment, you can be freed of the stress of chasing funds and focus on what you do best.