How gas distributors can get paid faster

Invoice on time

The longest delay is often not the customer. It is the gap between the delivery and the invoice. Every day an invoice sits unsent is a day added to when you get paid.

• Invoice from what was actually delivered, not what was ordered, so there is nothing to query.
• For occasional customers, invoice straight after each delivery.
• For regulars and anyone paying cylinder rent, invoice on a fixed weekly, monthly or quarterly date, so they know when it is coming.

Make the invoice easy to pay

An invoice that raises a question gets put aside. A clear one gets paid.

• A clear due date.
• Your bank details and the reference to quote.
• Each delivery listed with its date and quantities.
• A consistent invoice number the customer can refer to.
• A way to pay by card there and then, for customers who would rather not set up a bank transfer.

Agree terms up front

Set payment terms for each customer when you open their account, for example 14 or 30 days, and put them on every invoice. Then decide how each customer pays:

• Before delivery, by a payment link. Sensible for new or one-off customers.
• At the door, in cash or by card.
• On account, invoiced afterwards. Best kept for customers with a track record.

Take payment at the door

For many customers the simplest moment to pay is when the cylinders arrive.

• Cash. Record the amount at the stop, including part payments, so the balance is right. Keep track of what each driver is holding and check it when they hand it in.
• Card. A payment link or QR code lets the customer pay on their own phone, with no card machine in the van.

Chase politely and consistently

Most late payers are not refusing. They have forgotten. A steady reminder schedule deals with that without anyone having to make an awkward call.

• Send the first reminder a few days after the due date.
• Repeat at a set interval.
• After a set number of reminders, pick up the phone.

Record payments as soon as they arrive, so nobody is chased for an invoice they have already paid. Nothing annoys a good customer faster.

Deal with queries quickly

An invoice under query does not get paid, and a query left unanswered becomes an excuse. When a customer says a figure is wrong, answer the same day if you can. Proof of delivery, with the quantities and a signature or photograph, settles most of these in minutes.

If you did get it wrong, cancel the invoice and issue a corrected one rather than asking the customer to pay part of it. A clean invoice is far easier to chase than a disputed one.

Decide who stays on account

Paying on account is a privilege, not a default. Review it now and then:

• A customer who pays reliably on time has earned it.
• A customer who is regularly late can move back to paying at the door or before delivery, with notice.
• A new customer can start on paying first, and move on account once they have a track record.

Telling a customer this plainly, before it becomes a problem, is easier on everyone than stopping deliveries without warning.

Know who owes what

Once a week, look at the total outstanding and the total overdue, and start with the largest balances. When a customer rings, have their open invoices in front of you.

Pay particular attention to customers who are both late to pay and holding a lot of your cylinders. That is the combination that costs most.