Late invoices are becoming a notable problem for tradespeople, and that doesn’t look set to change anytime soon. As of last year, this not-so-small problem was costing companies an average of $40,000 annually, not to mention the time taken to chase invoices that are increasingly remaining unpaid.
HVAC companies are right at the forefront of this problem; unsurprisingly, many business owners are calling for change as costs for parts and labor continue to soar this year. In many cases, that change is coming in the form of scrapping convoluted invoicing altogether, in place of mobile payment solutions for HVAC and field technicians.
By bringing payments to customers, this simple switch is allowing countless professionals to take back financial control at last. But what are the benefits of making a switch that’s been decades in the making? Keep on reading to find out.
# 1 – Immediate Compensation
It’s typical for invoices to have a payment window of roughly 30 days. That’s bad enough, but with most professionals now facing an average payment delay of eight days, it can very quickly become a profit-ruining issue. This is especially the case in an industry such as HVAC installation, where expensive parts and skilled labour need to be paid for upfront. In other words, invoices could leave you out of pocket for a full financial month, and that’s if you receive payment at all.
Mobile payment systems serve as on-the-go points of sale that see you receiving payment before you’ve even left a job. Of course, you’ll still need to pay for parts and labor upfront, but immediate compensation means you’ll be able to put that money back into your business accounts before you’ve even noticed it missing, and roughly 39 days before you would’ve received it from an invoice.
# 2 – Ease for Everyone
Invoices are an undeniable hassle for contractors like yourself, and customers don’t like them much, either. It’s all too easy to forget payment, and even those who don’t will need to enter their bank credentials themselves. In that sense, you could say that on-site payments also bring notable ease on all fronts.
With the right payment solution in place, you can make it so that customers simply need to tap their card for contactless payments, or even pay right from their phones. Of course, alternatives like direct bank transfers might be required for higher dollar amounts, but even then, everyone’s life will be a whole lot easier if you reconsider your processes while running your business.
# 3 – No Need to Chase Up
Around 14% of companies spend over five hours chasing late invoices weekly. That’s the best part of a lost workday every single week, and it’s something that you can clear up with simpler on-site payments in place.
That’s because there needn’t be the same complex paper trail or scope for errors when payments happen immediately. You’ll be far better able to keep track of payments that you’re literally overseeing, and get on with the next HVAC installation on your to-do list.