As a recruiter, you need your clients to pay you on time so you can cover your business expenses. However, not every client will follow your payment schedule. Here are some tips for getting your clients to pay you on time.
Enforce Legally Binding Contracts
Make sure you have a legally binding contract with each client that details the expectations you both discussed and agreed upon. Specify payment terms and highlight them when signing each contract. Include when payments need to be made, how payments should be received and other specific information that fits your needs. Include late fees in your contracts as an incentive for your clients to pay you on time. For example, you may charge a 3 percent fee with compounding interest.
Send Accurate Invoices
Ensure each invoice is clear and specific so the person paying the invoice knows whom to call for questions and how to get in touch. Ask each client what information they require on invoices, such as a PO number, EIN or detailed breakdown of services, so the client understands what they’re paying for. Specify when the invoice is due, such as 30 days from the date of the invoice, so the client knows when to pay by. Clearly state your late fee so each client understands what it is and when it applies.
Provide different payment options for your clients and process payments as they’re received. For example, if you utilize software to accept online or credit card payments, clients are more likely to pay you in a shorter timeframe. Be sure your clients can set up automatic payments for recurring charges due to retainers or ongoing work. Ensure you record each invoice as it’s paid so you keep accurate records for both your clients and you.
Follow Up on Late Payments
Send reminders about overdue invoices at specific intervals. Call the client to ask when the invoice will be paid. Keep in mind your client may be unaware an invoice is late or thought someone else already paid. Remain friendly and professional but firm.
If payments are regularly late, talk with your client about the importance of paying on time. If payments stop altogether, stop performing work for that client until the situation is resolved to your satisfaction.
Partner With USA Staffing Services
Save time and money by partnering with USA Staffing Services for all your invoicing needs. We streamline the process by providing client contracts for you to use, creating and sending weekly invoices and processing payments. USA Staffing Services also provides you with a dedicated AR specialist who handles accounts receivable and collections and creates weekly aging reports showing client invoices and open balances.