All You Need to Know About Due Upon Receipt Invoicing
Everyone wants to receive payments as soon as the work is completed. This is especially important when you have been cheated by a client before. Moreover, you need to maintain a positive cash flow and make huge profits.
A sure way of eliminating such instances is depending on the due upon receipt invoicing method. This means that your client needs to clear your invoice on an immediate basis, and you will no longer be required to chase down outstanding payments. Let us know more about the due upon receipt invoice and how free online invoicing software can help you do it.
Due Upon Receipt Invoice
A payment that is due upon receipt is meant to be cleared the next business day. This is an ideal way to communicate that you wish to be paid as soon as you deliver your products and services.
Due upon receipt, invoicing is ideal for one-time or new clients. In this way, you can wrap up things fast and have a clean transaction record.
While it is a great idea to send due upon receipt invoice, it is not always ideal. Your clients may feel that you are too demanding and it may irritate your clients. You can experiment with other ways of handling invoices depending upon the relationship you hold with your clients.
If you are considering switching to this method, it is suggested that you review its pros and cons.
Pros of Due Upon Receipt Method
Here are some of the benefits of using the due upon receipt method.
1. Faster Payments
Freelancers and small businesses struggle with limited financial resources. Free online invoicing software can help you generate bill statements and get the capital you need to start your next project.
2. Reliable Cash Flow
Poor cash flow can adversely affect your business and its financial health. Timely payments will help you avoid these issues and plan your projects in a better manner.
3. Eliminate Time Wastage
Running a business involves a lot of work and worry. However, following up on payments should be the least of your concern. Free online invoicing software will help you do that and much more, so you can focus on your core business tasks.
4. Track Invoices
With so much on your plate, it can be easy to look after all invoices. Free online invoicing software will help you do that and stay on top of your finances.
Cons of Due upon Receipt Invoicing
While the benefits of these invoices are many, there are some disadvantages too.
1. Inconvenience to Clients
Some clients may face issues in paying immediately. Also, due upon receipt invoicing is not ideal for projects that require supervision and constant revisions.
2. Decreased Likelihood of Business
Some clients can feel that you are extremely difficult to work with and will not prefer giving you work again.
So, it is up to you to decide how you wish to send out your invoices and determine the payment terms accordingly.
How To Request For Immediate Payments?
To maintain a good relationship with your clients, you need to make these requests politely. However, you must make it a point to lay out clear payment instructions.
You can follow these tips and increase your chances by 10x to get immediate payments.
1. Express gratitude for their purchase. Thank them generously and tell them that they are your valuable customers.
2. Lay down your payment expectations. For example, you can state, "Installment should be made inside 3 work long periods of getting the receipt."
3. It is very important that you specify the payment method. Would it be a cheque, a demand draft, bank transfer, or payment via popular payment gateways? Make sure you clearly write it.
4. Lastly, make sure your payment doesn’t come as a surprise to your clients. Whenever you start your project, make sure to include this in your contract.
This was all about how due upon receipt invoicing and free online invoicing software can help you streamline your payments and stay on top of your finances.
In the long run, it will help you build trust with clients and maintain a positive cash flow at all times. Moreover, you will send in regular reminders to your clients and no longer chase them for settling your dues.
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