How to Collect Payments from Customers to Get Paid Faster

1. Ask for a deposit

Asking for a deposit before a job begins ensures you have the funds you need to purchase materials, cover labor costs, and commit to the work. 

It’s also an effective way to make sure a client is invested in a project from the get-go, weeding out noncommittal clients and those who may not plan to follow through with payment.

2. Communicate clear payment expectations

Before a job begins, clearly state your payment terms, such as: 

• How much the job will cost, including taxes and material costs
• Which payment methods you accept
• When payment is due
• Whether a deposit is required
• When you will send an invoice
• What happens if they pay late
• Whether you offer early payment discounts

It’s beneficial to go over this in person with your client and to include it on quotes, invoices, and contracts. If you have a website, you can add it to a page outlining your terms and conditions. 

If a client understands and agrees to your payment expectations upfront, they’re more likely to follow them when they receive an invoice.

3. Send an invoice

If you don’t send an invoice, a client won’t know payment is due. At the end of every job, provide an invoice that includes: 

• An invoice number for easy tracking and reference
• Your business information
• Client details, such as a name and address
• The total amount due after taxes, discounts, and deposits 
• The payment due date
• Payment instructions, like which payment methods you accept
• Payment terms, like whether you charge late fees or interest on unpaid bills

While you can send paper invoices to customers, they can get lost or damaged in transit. Digital invoices are a better option since they’re easier to track and more convenient for clients. 

You can use invoicing software like Jobber to: 

• Create and send professional invoices, with custom images and company branding 
• Add payment links to invoices to get paid faster
• Send invoices via email or text
• Automatically follow up on outstanding invoices

4. Offer multiple payment methods

By offering multiple payment options to customers, you make it easier and more convenient for them to pay you. For example, you can accept: 

• Credit card payments
• Debit card payments
• Tap to Pay
• ACH payments
• Cash
• Checks

Which payment methods you offer will depend on how and where you deliver your services. 

For example, if you typically work on-site, like a handyman, collecting customer payments in person may be ideal. But if your services take place without the client around, like a cleaner or lawn care specialist, online payment options may work best, so that you don’t need to spend time driving back to the site to collect payment.

5. Use early payment incentives

Payment incentives encourage clients to make early payments by offering them a small discount, such as:

• 5% off for payments made by a certain date
• 10-20% off a future service

For example, you could offer a payment discount if a client pays within 10 days of receiving an invoice, or 15% off their next service of $250 or more. 

It helps to boost cash flow and prevent late payments, while rewarding customers who pay before their invoice due dates.

6. Provide flexible payment options

Large invoices can be hard for clients to pay all at once. Allowing them to make monthly payments through in-house or third-party customer financing helps them manage their budget while providing you with incoming cash. 

For example, you can offer monthly payment plans for bills over $1500 through your business, like $300 a month over five months. 

Or you can use a customer financing platform to handle customer loans instead. For a fee, they provide the customer with a loan and pay you for the total invoice upfront. 

Not only does this help you to get paid faster, but it can also win you more jobs, since it provides payment options to customers who may not be able to afford your services otherwise. Like those with smaller budgets who need emergency repairs done.

7. Set up recurring billing 

Recurring billing is when you use pre-authorized credit card payments to charge clients for ongoing work on a rolling basis. This kind of automatic payment works great for weekly cleaning, biweekly lawn care, or seasonal snow removal. 

You can use a credit card authorization form to get the client’s permission to set up recurring billing. Then, process payments for the pre-approved amount on the same day each week or month as agreed on by the client. 

Or, use payment processing software like Jobber to automate recurring payments for you. 

It’ll save both you and your client time, free up cash flow, and prevent you from having to send payment reminders. 

Just make sure that you still send an invoice and receipt to the client for their records, and get permission before charging for additional services.

8. Send payment reminders

Send payment reminders before a due date has passed to get ahead of late payments. For longer billing cycles, like net 30, it’s good practice to send a reminder 1-3 days before the invoice due date if a client hasn’t paid you. It gives them a chance to pay their invoice before any fees or penalties apply and saves you from chasing down late payments. 

The easiest way to do this is to use payment processing software like Jobber to automate payment reminders on unpaid invoices before they’re even due.

9. Try different contact methods

If all else fails and you’re trying to collect money from a customer who is unresponsive, it may be time to try another way of getting in touch. 

For example, if you’ve only been reaching out via email, your messages could be going straight to their junk folder or you might have the wrong address. 

Instead, try giving them a call, sending a text or letter, or leaving a notice at their home. 

If the custome is another business, try contacting someone else from the company. It’s possible that your contact is on vacation, switched jobs, or their department doesn’t handle payments.

10. Use software to upgrade your payment collection process

Using payment processing tools is one of the most effective ways to collect payments from customers. The most popular platforms for home service providers are Stripe, Square, and Jobber, but each one works differently. 

For example:  

• Stripe works well for online payment processing and complex billing models. Like if you need to customize your payment processing software to suit your business’s unique requirements. 
• Square is known for a variety of hardware options that offer in-person payment processing. While it also supports online payment methods, it’s more popular for those with physical offices or storefronts. 
• Jobber blends online and in-person payment processing methods designed for home service businesses. 

With Jobber’s payment processing software, you can: 

• Accept onsite payments with Tap to Pay on your mobile device
• Process online payments on your website or through invoice payment links
• Set up recurring payments for ongoing work
• Receive ACH bank transfers
• Collect tips from happy clients for a job well done
• Manage booking, scheduling, quoting, invoicing, and getting jobs in one place.

Choosing the right tools can save you time, money, and stress, so you can focus on building your business instead of chasing payments.

What do you do if a customer doesn’t pay you?

51% of businesses receive payments after their due dates, which means you’ll probably have to deal with an outstanding invoice at some point. 

Before you do, make a late payment escalation process so you have a roadmap to follow by using these steps: