In a recent blog post about how to get invoices paid faster, Turbine outlined 10 tips for getting paid on time.
- Be polite
Small phrases like ‘please pay your association invoice within…’ and ‘thank you for your membership’ can make a big difference. It can increase the percentage of invoices paid by over five percent.
- Be specific
A specific time frame like ‘please pay within 14 days’ resonates with the human mind (a.k.a. your members) more than something cryptic like ‘payment terms: net 30’ or ‘pay upon receipt’
- Use interest
Explaining that you’ll be adding interest on late payments results in a higher percentage of invoice payments, but typically the payments take longer for the association management to receive.
- Offer incentives
Offer discounts to association members who pay within a set time frame (e.g., 5% for online payment received within 5 days).
- Do it right
Ask the association member about their preferred invoice method. When it comes to a member business, make sure invoices are properly formatted, include all necessary details, and are sent to the correct person.
- Make it a routine
Invoice members at a set time, every time. People pay faster when invoices are emailed between certain times. Be sure to determine the highest success rate for your membership.
- Multiple payment methods
If your association members have different options for payment, particularly online (credit, debit card, ACH transfer, etc.), they’ll pay faster.
- Audit your members
Pay attention to the amount of time it takes for your members to pay their membership dues and dial in on habitual late payers. Make an action plan to ensure your association actually gets paid.
- No benefits until they’ve paid
Would you let a customer leave your store with a new set of patio furniture, with the promise of payment? It shouldn’t be any different for your association members.
- Be prompt with invoices
Sending invoices right away typically results in faster payment. Issuing association invoices later often means delayed payment.
Editor’s note: This article was originally posted on April 23, 2019. It has been updated.