As a business owner, it is a top priority for you to receive your payments on time from your clients. When payments are not done timely and there are unpaid bills, it can cause serious consequences such as unavailability of cash for sudden business requirements, poor inventory management, huge time loss while chasing clients for payments, etc. Thankfully, automated payment reminders can protect your business from all these irritants and more.
What are automated payment reminders?
Automated payment reminders are simply written notifications that are set and auto-sent to clients who have not paid the outstanding amount for goods or services provided using a Business billing app. They have the purpose to remind your clients that the payment term is expired and he/she should pay the outstanding amount.
But why are they so in demand? These benefits will tell you:
1) Keep business organised
Payment reminders remind clients about forgotten payments and it triggers them to complete them. With timely payments, cash flows for the business are organised. A proper and healthy cash flow ensures availability of cash whenever required for business’ needs. With this, businesses can take quick, measured and better financial decisions.
2) Keep your clients updated
There can be many reasons from clients’ side for delayed or missed payments. A missed email with a bill attached, a forgotten or missed call, etc. Payment reminders play an important role here as they support multiple channels. There could be a possibility that your client is more active on WhatsApp rather than on emails and vice versa. You can select the channel accordingly and ensure that your client gets a reminder on the desired channel and that is addressed. With this, you will be able to receive your outstanding payments.
3) Save time and effort
This is as true as it can get because automated payment reminders save a lot of valuable business time. Your employees do not have to dedicate long hours to send, track and follow-up with clients when automated payment reminders are set and automatically sent. This way, business time is saved which can be dedicated to work on other important business aspects.
4) Improve business and client relationships
Payment reminders act as a very gentle reminder. Sending polite payment reminders to your clients maintains professionalism without the need of having uneasy conversations about outstanding dues. This maintains a positive relationship between you and your clients while helping you to receive your dues.
5) Build strong business identity
Sending automated payment reminders through a reliable and safe channel builds trust factor with your clients. Today, the internet is full of scams wherein fraudulent channels ask for payments. In such a scenario, having a trustworthy payment reminder system strengthens your brand identity which keeps your business in positive light.
The above written points are just a few essentials that an automated payment reminder system can provide to your business. There can be a lot more. In times of tough competition among businesses, payment reminders are not an option but a necessity for any business to ensure that payments from your clients’ side are completed. For more such information about business finances, keep visiting MyBusiness’s blog page.