How Can I Take an Invoice Payment from a Client?

Asking for money isn’t always a comfortable thing to do. But when you’ve put in the hard work, delivered a service or sold a product, you want to get paid on time.

Taking invoice payments from clients may seem straightforward, but the process involves a few key steps to make sure everything goes smoothly.

Here we’ll guide you through the different methods for taking invoice payments and give some tips to help the process be as pain-free as possible. Please note that we haven’t included holding someone by their feet and shaking till the money falls out on our list. Our boss wouldn’t let us.

Firstly, know your payment options

The first step is to decide which payment methods you’re going to accept. Different clients prefer different ways to pay, and by providing several different options, you can make the process easier for them and quicker for you. Making it easier usually means there’s less chance of them getting distracted and wandering off to look in the fridge before they send the money.

Bank transfers

One of the easiest and most commonly used payment methods is a bank transfer. This means the client directly transfers the payment amount from their bank account to yours. It’s secure and doesn’t generally involve paying any fees (depending on the bank, and whether or not they’re paying in the same currency). All you need to do is include your banking details on the invoice, such as your account number and sort code.

Credit and debit cards

Allowing your clients to pay by credit or debit card is convenient for them while also speeding up the payment process for you. To accept card payments, you’ll need to use a payment processor, such as PayPal, Square or Stripe. These platforms handle the transaction on your behalf and deposit the funds into your account, minus a small processing fee.

We’re going to casually mention that Pandle Pay allows you to add a payment button to your invoices. The client just needs to click it and submit their details as if they were making any other online purchase. The rest will be sorted out by Stripe and Pandle, and the payment will be allocated straight to the invoice in your accounts.

PayPal or similar online platforms

Many small businesses and freelancers decide to use online payment platforms like PayPal or even crypto-friendly services for invoice payments. PayPal, for example, allows clients to pay using a balance in their account, or via their bank account or card. These platforms often include invoicing features, so you can track the payment status in real time.

Create a clear and professional invoice

Once you’ve decided on your payment options, the next step is creating a professional and easy-to-read invoice. This can make a big difference in how quickly you get paid.

Here are some of the things every invoice should include:

Send the invoice promptly

When it comes to getting paid, timing is everything. The sooner you send your invoice after the work is completed or the product is delivered, the sooner you can get paid. It also helps keep the transaction fresh in the client’s mind.

Use online invoicing software

Using invoicing software isn’t mandatory, but it will make the process much smoother and more efficient. These tools help you create professional invoices, track payments and even automate reminders when payments are late. Double-bonus points if you use invoicing tools within accounting software, so your invoices are entered straight into the books when you send them. No we don’t have something in our eye, we’re winking at you. Pandle. Wink wink.

Send payment reminders

It’s not uncommon for clients to need a reminder to make a payment, especially if they’re very busy. Sending a friendly payment reminder can help nudge the client without being too pushy.

Here’s a tip: Set up automatic reminders within your invoicing software to follow up if a payment hasn’t been made by a certain date. But of course, make sure you keep the tone polite and respectful.

If the invoice is overdue, you might send a firmer message – but still aim to keep it professional and friendly.

Have a process to deal with late payments

Despite your best efforts, sometimes clients will still pay late. Having a clear process for handling overdue payments can help avoid confusion and maintain a professional relationship. Again, you might want to include late fees in your payment terms, or schedule reminders to follow up with the client if the payment goes beyond the due date.

If the invoice remains unpaid after several attempts to collect, you might need to consider more formal steps like hiring a collections agency or pursuing legal action, though these should really be a last resort.

Don’t over-complicate things

By offering multiple payment options, creating clear and professional invoices, and staying on top of reminders, you’ll make it as simple as possible for clients to pay you quickly and easily. Setting up a streamlined invoicing system that works for everyone is essential for smooth cash flow and keeping your business running at its best.

Learn more about using Pandle to make business accounting easier. Create an account today and decide what to do with all the extra time you get back.