ServCraft blox: How to Get Paid On Time as a South African Security Technician

Running a security 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 security technicians 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 security technicians across South Africa.

Why Getting Paid On Time Matters for Security Technicians

Late payments aren't just a small challenge for security technicians; 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:

Less Money in the Business:
Late payments disrupt your cash flow, affecting day-to-day operations. This means that immediate expenses, salaries, investments, and timely supplier payments all suffer. In fact,
survey findings
show that more than 50% of South African businesses struggle to pay for critical services due to payment delays.
Time Wasted Chasing Payments:
On average, South African security technicians spend almost 20 man-days chasing payments which costs them an average of R65,000 per year. In the security world, where time equals money, these tasks divert resources from more productive work.
Less Money in Your Pocket:
In many cases, personal income for security technicians is directly linked to their businesses' cash flow. Delayed payments translate to personal financial strain, creating an unfair scenario for hardworking individuals.
Unneeded Stress:
Late payments not only hurt the bottom line but also take a toll on mental and emotional well-being. The constant worry about cash and energy spent on chasing payments could be better used for business growth.

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 security technicians navigate this challenge to ensure they get paid on time for their hard work?

7 Tips for Getting Paid On Time

Dealing with late payments requires a proactive approach from security technicians.

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

1. Send Your Invoices On Time

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 security 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.

Get started:

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.

2. Make Your Payment Date Clear

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.

Get started:

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.

3. Set Expectations When Giving a Quote

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.

Get started:

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.

4. Be Upfront About the Costs

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 security installation equipment.

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

Get started:

Check out this video

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

5. Know the State of Your Finances

Understanding the state of your security 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 security business, preventing late payments from turning into bigger problems.

Get started:

Check out this video

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

6. Set up an Easy way to Follow up on Overdue Payments

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.

Get started:

Check out this video

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

7. Keep Your Promises

Perhaps the most effective strategy to avoid late payments is to consistently deliver high-quality work. This leaves your security 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 security business.

Get started:

Check out this video

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

What to do When Your Security Customer Refuses to pay

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 security business. Here's a practical guide on what to do next:

Assess the Situation:
Thoroughly analyse the situation before taking formal action. Understand reasons behind non-payment, such as misunderstandings, financial difficulties, or disputes. Adapt your approach based on this reason.
Communicate Professionally:
Start with professional and non-confrontational communication with the customer. Clearly outline outstanding payments, reference the terms you agreed on, and try to find out why they haven’t paid. A gentle reminder might be all that’s needed to get them to pay the outstanding invoice.
Send a Formal Demand Letter:
If this friendly communication fails, escalate things by sending a formal demand letter. Clearly state how much they owe you, the terms you agreed on, and any late fees that might apply. Set a reasonable deadline and mention the consequences if they still don’t pay you. This letter is as a formal record of your attempt to sort out the matter in a friendly manner.
Offer a Resolution:
Be open to negotiation and find a middle ground if there are any disagreements. Fix any valid issues or relook the terms you agreed on to pave the way for a solution without legal measures.
Seek Legal Advice:
If friendly resolution attempts fail, consult with an attorney specialising in debt collection or contract disputes. They can guide you on the best course of action and help with drafting a formal legal notice.
Small Claims Court:
In South Africa, we have the Small Claims Court for cost-effective resolution of relatively small claims. If a claim falls within its jurisdiction, file a case for a quicker resolution compared to traditional legal channels.
Mediation or Arbitration:
Consider alternative ways to resolve your dispute like mediation or arbitration. A neutral third party can help you find a solution that suits both you and your customer. This is often faster and costs less than formal legal proceedings.
Formal Legal Action:
If all else fails and the amount justifies it, hire a lawyer for formal legal action in debt recovery. This can cost you a lot of time and money, but sometimes it's the only option to protect your interests.

How to Get Paid on Time to Keep Your Security Business Growing

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.