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Out of all the frustrating responsibilities that small business owners must face,auto eroticism erotic late or not getting paid by clients is one of the hardest things to deal with.

Over the years I've owned several small businesses, agencies and been a part of several large organizations that have all been stiffed by our clients. It's unavoidable and will happen to every business owner. But there are many things you can do to help this not happen as often as it's happening right now.

I've analyzed more than 1 million invoices that have been sent in the past year. I've learned a few things about billing clients; there are a few key things you can do to avoid not getting paid. Here are a few findings from our research.

Have a written contract

I’ve said this before in an article for Intuit QuickBooks. Working without a contract is just asking for trouble.

Without a written contract, there is no legal obligation for a client to pay you for all of your hard work. In short, having a contract is a necessity if you want to guarantee that your invoices will be paid.

The contract should be discussed and agreed upon with both parties prior to the launch of a project. It should cover the following:

• The specific work or goods that you’ll provide to the client.

• How much money you’re going to be paid. This could be either hourly, monthly, or by-project.

• The date that the project is expected to be completed.

• The payment methods that you accept, such as Credit Card, PayPal or eCheck.

• The amount of money you require upfront.

• The steps you’ll take to settle a non-payment.

• Knowing the individual in charge of billing so that you can contact them if there’s an invoicing concern.

• What will happen if the project is terminated.

• Knowing if you’ll be compensated for any adjustments.

• Is your work copyrighted?

Invoice frequently

Let’s keep this short and sweet. The faster you send out an invoice, the faster you’ll get paid. And that’s great if you want to improve your cash flow. But, we’ve also found that if you haven’t been paid within 90 days, only 18% of those invoices get paid.

If you want to prevent this from happening, invoice frequently, preferably once a week.

Switch to cloud-based invoicing software

If you’re still using snail mail to send out invoices, then you’re doing yourself a huge disservice. Besides waiting for the invoice to be sent, reviewed, and approved from your client, you then have to wait for a check to arrive in the mail. That definitely can impact your cash flow. Furthermore, you’re also taking the chance that the invoice or check in the mail.

Yes, we send out snail mail invoices as well, but we find having an online invoice sent will be paid 30-45 days sooner and has a 22% increase in probability of actually being paid.

To speed things up, and make billing more convenient for both you and your client, make the switch over to a cloud-based. This allows you to quickly create invoices and email them to your client. The client can make an immediate secure, electronic payment once they open the email. Best of all, that money should be in your account within 1 business day.

Use recurring billing

We found that the biggest reason businesses don't get paid is because they forget to bill. While this may seem like a no brainer, it's one of the biggest mistakes business owners make. Next, make sure you're billing on the same time each month. Easiest way to do that is to setup your invoices to send automatically.

All you need is:

• The customer’s billing information

• The amount of each billing transaction

• The method of payment into your online billing software

Once you have this information you can set-up the recurring billing feature from your billing software. This will automatically charge your client’s credit card or bank account every month on the chosen billing date. Your client will also instantly receive an email receipt.

This will prevent you client from ever forgetting to pay your invoice.

Days vs. net

By using the word “days” as opposed to “net” your invoice will get paid 14% more often since it’s easier to understand for the client who isn't as familiar with business and invoicing jargon.

Additionally, when you use terms like “upon receipt” the client can easily interrupt that the invoice can be paid whenever. And, remember, the longer the invoice goes unpaid, the less likely it will get paid. Instead, give your invoice a specific time frame, such as “30 days.”

Offer early payment incentives and late payment penalties

You can motivate your clients to pay the invoice by offering a 2% discount if the invoice is paid within 10 days. That may not be much, but that little incentive is usually enough to motivate them to make a payment.

If incentives aren’t working, then also consider penalizing them for late payments. Just like with discounts for an early program, a small 2% interest fee that will be charged per month on late payments is enough to add a sense of urgency.

Remember, these should both be addressed when composing your contract. Also, include this information in your invoices so that your clients are reminded.

Mind your manners

Simply adding a “please” or “thank you” to an invoice can actually increase the chance of getting paid by more than 5%.

Keep track of client’s payment history

Create a database, even if it’s a spreadsheet, which keeps track of your client’s payment history. For example, if you have a client who has never missed a payment, then you could send them a handwritten thank you note, gift, or discount. It shows them that you appreciate them paying in a timely manner, which should motivate them to keep doing so in the future.

On the flip-side, if you notice that client has made late payments the last six months, you may want to contact their billing department to see why there’s a delay in payment. You may even want to consider letting them go so that you can focus on the clients that pay you on-time.

Have a plan of attack

You don’t have to get all Goodfellas on your client and literally rough them up when they miss a payment. You do, however, have to a have in place to handle these scenarios.

The first thing to do is to follow-up with the client. Most invoicing software does this automatically, but you want to personally reach out to the client via email or phone call immediately after the due date has passed.

If you’re not stern enough, then have a “bad cop,” like a partner or assistant, who can be more demanding. If that doesn’t work, then warn the client that you’re either going to put the invoice in collections or take legal action against them. Remember that contract you both signed? It’s situations like this where it comes in handy.

Consider invoice factoring

What is you need ASAP and the client hasn’t paid their bill? There’s something called invoice factoring that could solve this problem.

Invoice factoring is when you sell your accounts receivable (invoices) to a third party (called a factor) at a discount. Here’s an example of factoring from NerdWallet.

You have a $10,000 invoice and agree to sell it “for $9,700 in cash — $10,000 minus a 3% factoring fee ($300). The invoice factoring company advances 85% (or $8,245) of the invoice within a few days.” From there, the “factoring company then collects the invoice when it’s due and advances the remaining balance owed to you ($1,455).”

While factoring can give you fast cash when you’re in a pinch, it is costly since there could be hidden fees like application fees, a processing fee for each invoice you finance, credit check fees, or overdue fees

John Rampton is a serial entrepreneur who now focuses on helping people to build amazing products and services that scale. He is founder of the online payments company Due. He was recently named #2 on Top 50 Online Influencers in the World by Entrepreneur Magazine. Time Magazine recognized John as a motivations speaker that helps people find a "Sense of Meaning" in their lives. He currently advises several companies in the bay area.