How to get paid before payroll when customers pay late

Direct Answer: How to Get Paid Before Payroll

The key to getting paid before payroll is proactive communication and flexible payment options. Start by sending invoice reminders before they are due rather than waiting until they are late. Make sure these reminders include payment links that allow customers to pay by card or bank transfer quickly. If a customer can't pay the full amount, offer an installment plan they can set up themselves. This approach helps ensure money arrives when you need it most, reducing the need to rely on expensive short-term borrowing.

What Most Owners Try First, and Why It Stops Working

Most business owners initially try to solve late payments by sending manual reminders after the due date. They might also call customers directly. Unfortunately, this reactive approach often results in the same customers paying late repeatedly. The process is time-consuming, and the stress of chasing down payments can take away from running the actual business.

What to Do Instead

Change the timing of your invoice reminders. Send them a few days before the invoice is due, not after. Here’s a simple script you could use:

"Hi [Customer Name],

Just a friendly reminder that invoice #[Invoice Number] is due on [Due Date]. You can pay through this link: [Payment Link]. Please let us know if you have any questions. Thanks!"

Include a direct payment link in every reminder email. This makes it easy for customers to pay on the spot. If they need more time, offer an installment plan. You can suggest something like:

"We understand that things come up. If paying in full isn't possible right now, click here to set up a payment plan that works for you: [Plan Setup Link]."

These steps don't require any software, just a timely email and a link to your payment processor.

How This Gets Easier When the Follow-Up Runs on a Schedule

Imagine if all these follow-ups were automated, but still under your control. With ARPilot, you set the schedule, approve every message, and let the system handle the rest. No more worrying about missing reminders or forgetting to offer installment plans. You get a real-time view of who owes what and when, so you can plan payroll with peace of mind.

FAQ

How can I encourage customers to pay on time?

Send reminders before the due date, include easy payment options, and offer installment plans for flexibility. These steps help customers plan their payments, making them more likely to pay on time.

What if a customer still doesn’t pay after reminders?

If a customer still doesn't pay after reminders and installment offers, consider escalating the matter with a firmer follow-up. Sometimes a direct phone call may be necessary, but ensure all communication is logged for future reference.

Can I set up automated reminders without losing control?

Yes, with ARPilot, you approve each message before it sends. This way, the follow-up process is automated, but you remain in control of the communication style and timing.

What if I don’t use QuickBooks Online?

Currently, ARPilot integrates only with QuickBooks Online. If you're not using this system, consider switching to take advantage of automated follow-up features that can save you time and hassle.

How can I manage cash flow without relying on credit lines?

By proactively managing invoice reminders and offering flexible payment options, you can improve cash flow without resorting to credit lines. This strategy helps ensure that payments are received closer to when the work was completed, reducing financial strain.