How to Get Paid On Time as a South African Plumber

Running a plumbing business requires having positive cash flow. More often than not you need cash in the bank to buy the tools and materials you need to do the work before you get paid.

In South Africa, the issue of plumbers waiting to be paid on time is an even more serious issue.

That’s because according to

recent surveys

of over 500 business decision-makers in South African SMEs, 91% are stuck dealing with late payments, owed an average of R99,801 at any given moment, which comes to an eye-watering total of R249.5 billion nationally.

This isn’t just a minor inconvenience; it's a challenge that impacts the lives and businesses of plumbers across South Africa.

Late payments aren't just a small challenge for plumbers; they're a threat to the success of your businesses.

In South Africa, where SMEs contribute over 20% to our country's GDP and form nearly half of the workforce, this can have serious consequences.

Late payments, due to reasons like complicated internal approval processes, disputes, forgetfulness or cash flow issues, stretch these important contributors to the economy to their limits.

There are many negative consequences of late payments, including:

It's clear that late payments are more than a small financial nuisance; they disrupt the core functions of your business and impact the lives of those running it.

The question then becomes: How can plumbers navigate this challenge to ensure they get paid on time for their hard work?

Dealing with late payments requires a proactive approach from plumbers.

Here are seven practical tips to improve your chances of getting paid on time for your plumbing projects:

This might seem obvious, but it’s often overlooked – being on time with your invoices is the first step to making sure that your payments aren’t delayed. Set up a system to generate and send invoices quickly and effortlessly.

For larger plumbing projects, set up reminders for due dates, ensuring your invoices are sent regularly.

This lets your customers know that you expect to be paid on time.

ServCraft

can help you get paid faster with seamless invoicing integrated into your accounting software, automated follow-ups to remind customers their invoice is due, and an easy, one-click option to pay by credit card online.

Besides providing a detailed invoice, be sure that the payment due date is clear. Whether it's a 7-day, 14-day, or 21-day payment term, make it crystal clear on the invoice.

Late payments can sometimes be due to your customers not realising their urgency, so set clear expectations.

Include your available payment methods to make the process as easy as possible for your customer.

For a full breakdown of how to invoice your customers,

check out this video

that shows you what your invoice should look like and how you should send it.

Avoid misunderstandings by clearly communicating your expected payments, when they are due, and your preferred payment method.

When your customer accepts the quote, they are agreeing to meet these requirements.

By setting a clear payment schedule while you’re quoting, you create expectations from the beginning.

For a guide to setting clear payment terms,

check out this video

that takes you through commonly used invoice payment terms and how to effectively use them to protect your small business.

Not being clear about expected amounts can lead to disputes and, as a result, delayed payments.

Clearly define what your quote covers like travel time or extra costs like specialised plumbing equipment.

Putting everything in writing ensures both you and your customers are on the same page.

Check out this video

if you want to learn more about setting prices for your services.

Understanding the state of your plumbing business is essential to reduce the impact of late payments. Stay on top of upcoming invoices, overdue payments, and payments received.

A complete overview of your business's financial health allows you to reduce issues due to late payments.

Use invoicing solutions that give real-time insights into your plumbing business, preventing late payments from turning into bigger problems.

Check out this video

for an overview of how to track your business expenses and get an overview of your financial health.

Understand that late payments can occur and prepare yourself to address them efficiently.

Develop a straightforward process for dealing with late payers, including a pre-drafted letter or email for follow-ups.

Set up alerts for overdue payments and schedule reminders for follow-up calls. Being prepared to handle late payments professionally saves time and reduces stress.

Check out this video

for some tips and tricks to improve your chances of success when it comes to securing overdue payments from your plumbing customers.

Perhaps the most effective strategy to avoid late payments is to consistently deliver high-quality work. This leaves your plumbing customers with few reasons to delay payment.

Software like ServCraft helps you get customer sign-offs at each project milestone and take photos of completed work to keep a record that you’re meeting expectations.

This not only prevents late payments but also improves the reputation of your plumbing business.

Check out this video

for 11 tips on how to manage and exceed your customers’ expectations.

Even if you’ve followed these 7 strategies for getting paid on time, there may be times when customers refuse to pay you for your work.

If you’re in this difficult situation, it’s important that you take the right steps to protect the interests of your plumbing business. Here's a practical guide on what to do next:

Dealing with late payments can be tough, but staying organised and professional helps you handle non-payment situations effectively.

Remember, each situation is unique, and the best course of action depends on the specific circumstances.

So if you’re experiencing late payments there are things you can do. Don't let your money get tied up. Start implementing these tips today and get your cash flow flowing.