Late payments: an expensive habit that can be done differently
Every year, Belgian companies together spend no less than 9.2 billion euros collecting their invoices. An hallucinatory amount, especially when you consider that it's just about money they're entitled to. Nevertheless, it remains quite a challenge for many organizations to get their customers to pay on time.
Why do customers always pay later?
There are several explanations for the growing number of late payments:
- More consumers are struggling financially. Due to the increasing lifespan, more and more people are struggling to pay their bills on time.
- Administrative nonchalance is increasing. The threshold for paying a little “later” is getting smaller, especially when there are no immediate consequences.
- 3 out of 10 Belgians are no longer ashamed of late payments. A remarkable shift in mentality: delaying payments has become more socially accepted.
For companies, this not only means a delay in cash flow, but also a heavy administrative burden, extra pressure on the debtor department and an increased risk of default.
The solution? Make payment easy and human
The good news: there are digital solutions that really make a difference today. By making the payment process easier and more accessible, you're not only increasing your collection rate, but are you also building a sustainable customer relationship.
1. Offer installment plans via self-service
For customers who are temporarily short on cash, a installment plan make the difference between paying or not paying. Make requests easy, for example via an online tool where the customer chooses the number of terms and dates. The lower the threshold, the more likely you are to get paid.
2. Use automatic collections
With a recurring payment order you give your customer the option to make scheduled payments automatically, at fixed times. This way, appointments are properly complied with, without manual actions or reminders. No surprises for your customer, and no follow-up stress for your team.
3. Reduce payment resistance with smart payment methods
The easier you make it to pay, the faster it happens. Research shows that we experience less “payment pain” when it intuitive and accessible payment process is. Think about:
- QR codes or payment buttons on invoices
- Multiple payment options (Bancontact, credit card, Apple Pay,...)
- Automatic payment reminders via email, text message or app notifications
The result: social and efficient collection
With a customer-friendly approach, you can achieve more. You:
- increases you collection rate
- reduces your operational costs
- prevents escalation to collection
- and maintains your customer's trust
Watch video
In the video below, you'll explain Anthony de Bruyn what concrete steps you can take to future-proof billing process to make:
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