Cash flow is what keeps small businesses going. When customer payments are delayed, it affects many aspects of a business. In this post, we’ll discuss several reasons why payments can be late as well as how an AR automation software solution can help you minimize late and non-payment issues.
Here are several reasons why accounts receivable age:
Customer Missed the Invoice Email
Whether accidentally deleted or overlooked, it’s not uncommon for invoice emails to get overlooked. For this reason, reminders and multiple methods for invoice-lookup are essential to ensuring you’re doing everything you can to help your customer pay you on time.
A payments platform can help solve this problem with automated reminders and a central location to log in and view the status of invoices at any time.
You Forgot to Invoice
If you’re a B2B company with a high sales transaction rate, but little automation and support for invoicing and payment processing, it’s easy to forget to invoice the clients. Instead of creating invoices manually and sending them via email, consider upgrading to a fast, secure, and efficient digital AR automation platform.
Out of Office
Travel and other life events can lead to time away from the office. Whether it’s on the supplier or customer side, without backups in place, this can cause delays in either invoicing or payment.
Long Payment-Approval Process
As an SMB in the B2B space, you might work with larger organizations that have 90-day SLAs on payment. If there are questions about the invoice or any inaccuracies, this could lead to even further delays.
Ask questions to understand payment terms and determine if there’s any flexibility to adjust how you invoice to ensure a smooth business partnership. You might even consider offering a small discount for early payment.
Outstanding Questions About the Invoice
A customer might withhold payment if they still have outstanding questions about any number of aspects pertaining to your invoice. Make it easy for them to seek clarification. A centralized payment platform with built-in messaging capabilities can help clear up questions and get payments processed on time.
Simplify Payment Processing with AR Automation
Purpose-built for the B2B space, the Bill360 AR automation platform simplifies the cash-to-payment process with embedded payment processing, customer collaboration, smart invoices, business insights, and much more. To learn more, sign up for a demo.