Late payments are one of the biggest challenges facing subcontractors today. Here are five proven strategies to get paid faster.
1. Invoice Immediately
Don't wait until the end of the week or month to send invoices. The sooner you invoice, the sooner you get paid. With tools like Snap to Invoice, you can create and send invoices from the job site in seconds.
2. Be Clear About Payment Terms
Make sure your payment terms are crystal clear from the start. Include them in your contracts and on every invoice. Consider offering early payment discounts to incentivize faster payment.
3. Follow Up Consistently
The squeaky wheel gets the grease. Set up automatic reminders for overdue invoices, or use an AI voice assistant to make follow-up calls on your behalf.
4. Make Payment Easy
Accept multiple payment methods including credit cards, ACH transfers, and online payments. The easier you make it to pay, the faster you'll get paid.
5. Know Your Clients
Use payment prediction tools to understand each client's payment patterns. For clients with poor payment histories, consider requiring deposits or progress payments.
Bonus: Document Everything
Good documentation protects you and helps resolve disputes faster. Take photos of completed work, get sign-offs, and keep records of all communications.