Do you find that you have a lot of late-paying customers? If so then now is the time for you to do something about that. If you don’t then you may find that the issue only gets worse with time and that you struggle to stay afloat. If you’d like to make a positive change then take a look below.
Know Who You Are Working With
One of the first things you need to do is understand who your business is working with. Take the time to complete credit checks before you happen to agree to any new limits or terms. Using a lot of different platforms is a good idea here, so you can get an overview of your customers. You should also consider monitoring and checking in on your customers if you can, to make sure that they are paying on time. This can save you a great deal of time and money, and it can also help you to identify issues that could potentially happen earlier in the relationship.
Be Clear
You also need to be clear about your payment terms. Agree verbally with your customers and follow up with anything that may be required. Always make sure that your payment terms are on every single invoice you happen to send out. If you can do this then you will soon find that it is easier to get the result you’re hoping for and that your customers have a good idea of what is expected from them.
Avoid Cheques
Ask all of your customers to pay in cash if you can, or by electronic transfer. The main reason why you need to do this is so there is no chance for your payment to be rejected. Make sure that your credit control staff are informed and that you take the time to make sure that there is simply no opportunity for payments to be rejected. If you can do this then you will find it much easier to get the result you need.
Courtesy Calls
If you have issued a customer with a very large invoice, then make sure that you give them a call before the payment is due. If you can do this then you will be able to try and find ways to obtain the payment if possible. Of course, you need to make sure that you don’t delay in trying to get the payment because if you wait longer then this will reduce the chances of you not getting paid the money you need at all, so be mindful of that. If you don’t know how to send your customer an invoice, then you can look up how to write an invoice first, so you can ensure that you are including all of the relevant details. This will help you to get the result you want and it will also work in your favor when trying to remain professional. Take your time and include all of the right details too, so your customer doesn’t have an excuse not to pay.
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