5 Tips for Getting Paid on Time as a Tradie

Discover How to Streamline your Payment Processes and Ensure you're Paid on Time Every Time.

As a tradie, ensuring timely payment for your services is crucial for maintaining cash flow and running a successful business. Delayed payments can disrupt your operations and create financial stress. To help you avoid these issues, here are 5 practical tips to ensure you get paid on time:

1. Clear Payment Terms and Conditions

Set Expectations Early

One of the most important steps to getting paid on time is establishing clear payment terms and conditions from the outset. This means explicitly outlining your payment expectations in your quotes and contracts. Specify due dates, acceptable payment methods, and any late fees incurred if payments are delayed.

Tips:

• Include payment terms on your website and in all email communications regarding quotes. This ensures that clients are aware of your terms before they even engage in your services.
• Make sure your payment terms are easy to understand. Avoid jargon and clearly state when payments are due, what methods are acceptable, and what happens if a payment is late.
• Review your payment terms with clients in person or over the phone when discussing the quote. This personal touch can help ensure they fully understand and agree to the terms.
• Include a late fee. Specify the late payment fee structure in your terms and conditions. For example, you might charge a flat fee (e.g., $100) or a percentage of the invoice total (e.g., 1.5% per week late).
• Make contracts a standard practice for all jobs that exceed a certain value. This can vary depending on your business, but having a threshold (e.g., $500 or $1000) can help you decide when a contract is necessary.

2. Require a Deposit

Secure Upfront Payment

Asking for a deposit before starting a job is a great way to secure some upfront payment and demonstrate the client’s commitment. A deposit not only provides you with immediate cash flow but also allows you to purchase materials needed for the job without using your funds.

Tips:

• Standardise the practice of requiring a deposit, especially for larger jobs. Decide on a standard percentage (e.g., 20-30%) of the total job cost that you will require upfront.
• Clearly communicate to clients that the deposit is necessary to secure their booking and to cover initial costs. Explain how the deposit helps you manage expenses and ensures that you can start the job promptly.
• Provide a receipt for the deposit and detail it in your contract. This adds a layer of professionalism and transparency to the transaction.

Requiring a deposit is a practical way to mitigate risk and ensure that both parties are committed to the project.

3. Invoice Promptly

Bill Immediately After Completion

Sending invoices promptly upon completion of a job is crucial. The sooner the invoice is sent, the sooner you can expect payment. Include detailed descriptions of the work done and clear payment instructions to avoid any confusion.

Tips:

• Utilise the Nexxtap app to take payments on-site on the day of completion, ensuring that payments are processed quickly. This app allows clients to tap to pay on your phone, making the process seamless and immediate.
• Include all necessary details in the invoice to minimise back-and-forth communication. Clearly describe the services provided, the total amount due, the payment methods accepted, and the due date.
• Send invoices via multiple channels (e.g. email, text link, or physical mail) to ensure the client receives them promptly.

Prompt invoicing shows professionalism and helps keep your cash flow steady.

4. Offer Multiple Payment Options

Make Payment Convenient

Offering various payment methods can make it easier for clients to pay you. Accepting cash, credit cards, and tap-and-go payments, such as those enabled by the Nexxtap app, can streamline the payment process. With Nexxtap, clients can tap to pay on their phone, eliminating the need for additional payment terminals.

Tips:

• Clearly list all accepted payment methods in your payment terms and on your invoices. This transparency helps clients choose the most convenient option for them.
• Encourage clients to use digital payment methods for faster processing. Digital payments are often more convenient and can be processed more quickly than traditional methods.
• Consider offering incentives for certain payment methods. For example, you might offer a small discount for clients who pay within a certain timeframe.

The easier it is for clients to pay, the quicker you'll get your money.

5. Use Invoicing Software

Streamline Billing Processes

Investing in invoicing software can help automate and track your billing processes. Many platforms offer features such as automatic reminders and online payment options. Using apps like Nexxtap allows you to take payments on completion and send receipts automatically.

Tips:

• Choose invoicing software that integrates with your existing systems. This can help streamline your operations and make it easier to manage your finances.
• Regularly update and review your invoicing processes to ensure efficiency. Look for areas where you can automate or simplify tasks to save time and reduce errors.
• Use the reporting features in your invoicing software to track payments and identify trends. This can help you identify clients who consistently pay late and address the issue proactively.

Invoicing software can save you time and help ensure that you get paid promptly.