Every plumbing business has likely had to deal with customers who fail to pay invoices on time. Not only does this interrupt the cash flow into your business, but it is also insulting. No matter how much experience you have, you may understandably struggle with how to get your plumbing invoices paid on time.
Require customers to pay on-site to make sure your plumbing invoices get paid on time. Accept more payment methods, such as credit cards and online payments to make it easy for your customers to pay invoices. Set up a deadline and require your customers to pay a deposit of up to 50% to encourage them to pay the rest when you’re done.
Use plumbing invoice software to make and track invoices so you can hold your customers accountable. Call your customers if they fail to pay the invoice by the deadline and let them know that you will take debt collection action if they don’t pay. Follow along as we explore how to get your plumbing invoices paid on time.
How Do You Get Customers to Pay Plumbing Invoices?
Whether you offer new payment methods or require on-site payments, there are several ways to get plumbing invoices paid on time. Setting deadlines and requiring large deposits can also motivate customers to pay on time. Let’s look at the best ways to get your plumbing invoices paid on time so you don’t interrupt your business’s cash flow.
Get Paid on Site
The easiest way to get your plumbing invoices paid on time is to require customers to pay on-site. This isn’t a common practice among many plumbing businesses, but it’s necessary if you’ve been burned too many times. Send a digital invoice when you finish the job and hand the customer a physical copy as well.
Give them the option to pay online or with one of several payment methods, including cash, credit cards, and debit cards. You can even set up a PayPal or Venmo business account to make it easier for customers to pay on-site. That said, it’s a great idea to mention on your website or over the phone with your clients that you require on-site payment, so they aren’t surprised and upset.
Don’t get left behind. The new age of plumbers who are just getting into the business are doing away with paper invoices and using contactless payments, like Square’s Tap to Pay. It’s an effortless way of collecting payments that sync with your phone.
Accept Credit Cards
The biggest reason that most customers wait so long to pay invoices is because they are worried about their available funds. Credit cards give customers the chance to pay their plumbing invoices on time as the money won’t come from their checking account. This makes the invoice payment process easier for you and your customers as 82% of American adults have credit cards.
According to Fortune.com, credit cards are convenient for customers and gives them the ability to pay more upfront, since they don’t have to come up with the funds right away. You can also attract more customers if you specify that you accept credit cards on your website.
Set a Date
Set a deadline for when the customer must pay the invoice, so it gets paid on time. Include the deadline on the digital invoice and the physical copy so there’s no way for them to deny knowing the date. Tell the customer in person or over the phone as well to drive the point home.
A deadline of 20-30 days is standard and gives customers plenty of time to pay the invoice. However, you may want to set a shorter payment window of 14 days if you struggle to get customers to pay invoices on time.
Take a Bigger Deposit
If you have a history of customers taking too long to pay invoices, you may simply need to ask for a bigger deposit. Evaluate the situation and create an estimate of how much the invoice will be based on how long it will take and the materials you’ll use. Request a deposit of up to 50% of the cost of the job to bring some money in and encourage the customer to pay the rest as soon as possible.
That may seem too high, but you will send a clear message if you require a deposit of at least 30% or higher. This is especially useful for big jobs that take several days, but you can do it for standard toilet and pipe replacements as well if you are worried about the client. Set a deadline for the client to pay the remainder of the money they owe or accept the rest of the payment once you complete the job.
Use Plumbing Invoice Software
Plumbing invoice software makes it easier to create and send invoices, and customers can pay invoices more easily. You can easily create invoices based on templates that vary between programs and the services you provide. The best part about plumbing invoice software is that you can easily track whether the invoice has been paid.
Many plumbing invoice programs also include ways to track data, prices, and accounting for your business. Some programs let you schedule payments, so you don’t have to play phone tag with customers who don’t pay invoices on time. Plumbing invoice software saves time on creating invoices and helps make the customer more accountable for their payment.
Surprisingly, 52% of home service companies still use old methods of paper invoices and simple emails. Instead, using field service management software can help you improve productivity and save money. Such software can help with automating operations, like scheduling employees and managing jobs. Also, it reduces costs so you don’t buy too much inventory.
The top 3 best plumbing invoice software are:
- Kickserv
- Jobber
- HousecallPro
How to Handle Non-Paying Customers
Call your customer if they don’t pay your plumbing invoice on time. Wait until the day of or the day after the deadline to call and remind them that the invoice must be paid. Use a spoof phone number app or call them from a different number if they dodge calls from your primary business number.
Talk to your customer politely and set up a payment plan if they can’t pay the invoice in full. Make a short-term payment plan to ensure the invoice gets paid as soon as possible. Send them a letter in the mail if they don’t respond to any of your calls. Specify when the payment was originally due and establish a new, shorter deadline for when they must pay the invoice.
Inform the customer that you will take debt collection action if they don’t pay the invoice by the deadline. Contact a lawyer if none of your attempts to reach the customer work. You may need to take the uncooperative customer to small claims court. Provide the invoice as well as all your unsuccessful attempts to get the customer to pay it on time.
From there, it’s up to the judge to decide what happens next. They will likely decide that you must be paid for the plumbing work, and the judge may garnish the customer’s wages until it is paid off if they won’t pay you directly. Otherwise, you can use the outcome to enlist the help of a debt collection service if the customer still won’t pay.
So, What Should You Do if Customers Don’t Pay Invoices on Time?
Require customers to pay for your plumbing services on-site when you finish the job. Accept credit cards so your customer can pay the day of or before the deadline. It’s a great idea to require a deposit of 30% to 50% before you complete the job if you have a history of customers not paying invoices on time.
Take advantage of plumbing invoice software to create effortless digital and physical invoices. This will help you hold the customer accountable and track their payments. Reach out to a lawyer if none of your efforts work and let the judge force the customer to pay you for your work.
Every plumbing business has likely had to deal with customers who fail to pay invoices on time. Not only does this interrupt the cash flow into your business, but it is also insulting. No matter how much experience you have, you may understandably struggle with how to get your plumbing invoices paid on time.
Require customers to pay on-site to make sure your plumbing invoices get paid on time. Accept more payment methods, such as credit cards and online payments to make it easy for your customers to pay invoices. Set up a deadline and require your customers to pay a deposit of up to 50% to encourage them to pay the rest when you’re done.
Use plumbing invoice software to make and track invoices so you can hold your customers accountable. Call your customers if they fail to pay the invoice by the deadline and let them know that you will take debt collection action if they don’t pay. Follow along as we explore how to get your plumbing invoices paid on time.
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