The coronavirus pandemic has created a world that emphasizes virtual interactions. While it is easy to understand the health benefits of online exchanges, businesses are the first to note that the communication with their customers has suffered as a result. It is hard to show you care, as a business, when you remove face-to-face interactions. 

Additionally, without face-to-face dialogs, it’s tricky to remind customers to make payments on time without sounding unfriendly. How can you make sure your customers pay in a virtual business setting? 

Keep track of what you’re owed

For many small businesses that have had to switch their processes online overnight, keeping tracking of online cash flow can be tricky. It can be helpful to consider online bookkeeping services that can automate invoicing and payment reminders. Ultimately, it is easy for a small company to forget to send an invoice on time, especially if you’re not used to online invoicing. However, if you’ve got a tool that does it for you, you can’t blame yourself for delayed payments. Did you know that in almost a third of all unpaid invoices, the business is at fault for the delay?

The most common issues include failing to disclose your banking details on the invoice, sending the invoice too late, or not sending the invoice to the right person. 

Make it easy for them to pay

There is no way you can expect customers to carry on with typical business transactions online; the priority is to ensure the online platform is suitable for regular use. For many small businesses that have relied essentially on physical premises, the move to online retail facilities is essential to survive the pandemic low. Making it easy for your customers to access your business with everyday devices, such as smartphone-friendly processes, is a no-brainer.

The harder it is to navigate and pay online, the less likely you are to receive payments. At this stage, it is worth remembering that customers may have different payment preferences. Indeed, online payment preferences can vary greatly, even within the same location. While some customers are comfortable using credit cards online, others may prefer bank transfers or e-wallet options. If you limit payment options, your customers could struggle to finalize their transactions. 

Boost cash flow through incentives

Can you encourage payments to happen early? Incentives can be a useful tool to get your customers to pay their invoices before the deadline. For instance, early payments could receive a discount, making it easier for your company to manage cash flow. Alternatively, if a discount isn’t suitable for your processes, you can also offer a free product or service for every early payment. 

Don’t let covid-anxiety get to you

Unfortunately, in times such as now, delays are likely to occur. Your customers are also going through the covid motions, and meeting deadlines is not also easy. Yet, showing understanding and patience is the best approach to handle late payments. Ultimately, it could be more damaging to your brand to threaten loyal customers with interest payments or legal actions. Preserving your relationship is what will keep your business afloat in the long term. 

Your customers are working hard to make ends meet during the pandemic. The global economic recovery depends on the relationship you build with them. Helping them to pay without creating an uncomfortable situation can reinforce your bond and boost your cash flow. Now, more than ever, you need to preserve your relationship with your customers. 

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