• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
  • Business
  • Commerce
  • Management
  • Insurance
  • Banking Finance
  • Marketing & Advertising
  • Tech

Business Finance Articles

Your First Financial Choice....

  • Education
  • Career
  • Investment & Money
  • Accounting & Taxation
  • Transportation & Logistics
  • Industries

E-Commerce: How to Facilitate Payments to Increase Conversions?

Last Updated on October 11, 2022 By Ifama Leave a Comment

The important factor you can do to guarantee your organization’s success is correctly managing your cash flow. According to numerous research, there are significant cash flow issues due to accepting late payments. Because of this, it doesn’t matter how carefully you manage your cash flow; if you don’t get paid on time, you run the real risk of running out of money.

Table of Contents

  • Best Ways to Facilitate Payments to Increase Conversions
    • Create a Payment Arrangement in Writing
    • Have More Rigid Payment Terms
    • Keep a Regular Payment Plan that is Handy for your Clients
    • Request a Down Payment or Advance Payment
    • Offer a Range of Payment Options
    • Accept Payments Via Direct Debit
    • Regularly Send Payment Reminders
    • Make the Switch to Electronic Billing
    • Use a Platform for Payments and Orders
    • Reward Clients who Make Prompt Payments
    • Add a Late Payment Penalty
    • Examine your Invoices Frequently
  • Conclusion

Best Ways to Facilitate Payments to Increase Conversions

There are many methods you can encourage your clients to pay their bills on time that won’t hurt your relationship with them. The most efficient are as follows:

Create a Payment Arrangement in Writing

A formal contract between you and your customer that contains payment conditions, due dates, and other important payment information. To prevent misunderstandings in the future, talk things over together. On every invoice you deliver, you can underline the terms you’ve agreed upon; be sure to use precise language.

Have More Rigid Payment Terms

If you hope to satisfy your clients and ensure that paying is always convenient, offering flexible payment arrangements is wise. Remember that this can cause financial issues. Some clients will opt not to pay you on time no matter how accommodating your terms are because they are too disorganized and belligerent. Therefore, it is advised that you set a tighter payment deadline. To ensure that money will remain flowing into your company, it would be even better if you could arrange a shorter payment term.

Keep a Regular Payment Plan that is Handy for your Clients

You should tighten up both your payment terms and your payment timetable. Send invoices on the first and fifteenth of every month; be sure to follow a plan. This will assist them in managing their financial flow and teach them to make on-time payments a routine practice. 

Regarding the dates you select? Most of your clients will have a set payment deadline; this may be once per month and frequently applies solely to invoices received and processed two weeks earlier. Ensure you know the deadlines to meet those dates and the dates your customers process their payments. Then, plan the delivery of your invoices to avoid missing those dates.

Request a Down Payment or Advance Payment

New clients or those who place sizable orders benefit most from this. Today, E-commerce is the force multiplier for MSMEs. So ask for half of the payment to be made when the order is placed and the existing balance to be paid when the products are delivered. By doing this, you may be sure that you’ll get paid at least partially before the deadline, if not earlier.

Offer a Range of Payment Options

Your clients are equally as busy as you are. Since they have busy schedules, you must provide them with a simple payment option so they can still pay their invoices on time. Beyond the typical cash payments, it will be better for your business if you also take bank deposits and transfers, Cash on Delivery, payments made via mobile devices and the internet, and payments made using all of the major credit cards and debit cards.

Accept Payments Via Direct Debit

Lack of time to pursue late payments. The ideal tactic for you is this. The beautiful thing about direct debit payments is that they enable you to charge your clients routinely and automatically. Therefore, you can still get paid on time even if they are too busy or forget to process payments. But because there are so many procedures and guidelines to follow, setting up direct debits can be a real hassle. Utilize online resources or digital payment systems that can execute direct debit payments for you to make direct debits simple and worthwhile.

Regularly Send Payment Reminders

Sending clients pleasant reminders and inquiries regarding payments is acceptable. Not just the delayed or late payments, but; you may also remind people that the deadline is approaching. Utilize technology to put this up automatically so that your clients are being followed up in the background. Additionally, an automatic invoice system reminder is particularly efficient at getting payments in because it comes off as less intrusive, personal, and more like a routine, helpful piece of admin. Today, several digital solutions available may easily remind your consumers when payments are due by text message or email.

trolly-on-paper-and-mobile-in-hand

Make the Switch to Electronic Billing

Customers not paying on time frequently have late invoices as one of the main causes. By switching to electronic or online invoicing, these clients are no longer able to claim that their “invoice didn’t arrive” because it is always sent to them automatically as soon as an order is placed – better still, if they can log in and see it in a system in real-time. 

When you are in this procedure, it will be practical to accept payments tutorial for online businesses. What’s great about contemporary online invoicing solutions is that they can send out reminders for payments and even connect to digital payment systems, enabling you to charge your consumers promptly. You can now put more emphasis on your work, which benefits both you and your consumers. 

Use a Platform for Payments and Orders

Dedicated ordering systems enable you to accept and manage retail orders from a single dashboard while facilitating on-time payment. You may now concentrate on the other important chores because it can produce precise invoices and deliver them to your clients electronically.

Reward Clients who Make Prompt Payments

Offering incentives to customers is one of the most efficient ways to encourage timely payment. If you get their money in before the invoice due date, you can choose to thank them with gift cards or give them small goods discounts. Ensure your reward will motivate your consumers to make payments on time. You may quickly set up various pricing choices and discounts for your clients. 

Add a Late Payment Penalty

Unfortunately, some customers will still fail to pay their invoices on time, regardless of how generous your quick payment incentive is. What is the most applicable method for handling these clients? Add late fees to their account. It might be sufficient to draw their attention and persuade them to make a timely payment with an additional charge of 2%. To encourage your customers to make on-time payments, combine rewards for early payments with penalties for late ones.

Examine your Invoices Frequently

You must monitor and manage your invoices to determine which customers have or haven’t made payments. You can accomplish this by hand, or if you’re overloaded with administrative duties, you can use a computerized tool to assist you. Some web-based systems can immediately alert you to anyone who hasn’t paid, so you can go after them immediately rather than waiting for them to send their money in. These systems include the majority of accounting software.

Conclusion

No business owner enjoys pursuing late payments because it is a time-consuming chore. You may have an idea about what customer satisfaction is. Spending time and effort phoning customers to collect payment for bills reduces productivity and affects your present cash flow situation. But remember that not all of these suggestions will be effective for every business, so it’s always best to use a few different tactics to see which ones work best for you.

Ifama

Hi! This is Ifama. I am a student and giving my services in SEO. I have a lot of experience in digital marketing. Travelling is my hobby and I love visiting different hilly areas and doing adventures.

Filed Under: Commerce, Technology

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Primary Sidebar

person using calculator and papers on table
a person scanning his credit card
Insurance Trucking Company
car accident
man use Shot Peening Machine
Hiring lawyer
property-insurance
Contingent Beneficiary
money in the envelope
woman holding a tote bag
Crypto hopper
image on the clothes and shoes
books
trading graph and hand
Rental Property Value Calculator: How to Tell if a Property Is a Good Investment
business-with-files
Business-Management
Girl-hold-his-CV
IPO
A-person-pick-Brand-wood-stick
Visionary Leadership
woman hand touch the white board and people look this whiten board
woman analyzing business budget
person hand holding smartphone
man using laptop

Footer

  • About US
  • Contact Us
  • Blog
  • Comment Policy
  • Terms & Conditions
  • Privacy Rights
  • Privacy Policy
  • Follow Us On
  • – Google News
  • – Facebook
  • Entrepreneur Skills
  • Business Cycle
  • Business Ideas
  • Speculator
  • Be Wealthy
  • Psychology in HRM
  • HRM in Business
  • Businessman Qualities
  • Salespeople Types
  • Health & Business
  • Business Success Rules
  • Stress At Work
Copyright © 2018-2022 BFA