February 19, 2013

Get your customers to pay on time this year

Unpaid involves can really undermine the success of your small business. But late payments can be another huge problem as well. In fact, some small businesses list late payments as a bigger problem than bad debt! Don’t let your customers use you as a source of interest-free financing. Here are some tips for getting them to pay you on time in 2013:

Make your payment policy crystal clear. When was the last time you reviewed your credit policy? How about your sales contracts? Make sure you’re clear with your customers on three main points – the deadline for paying their bill, what steps you’ll take if they don’t pay on time, and any penalties that apply with a late payment.

Give discounts for early payment. Financial incentives can work wonders with some customers. Provide some type of discount for those who pay early and you might just see a check in the mail from a customer much earlier than you expected.

Get us involved early. Don’t wait months and months before giving us a call when a customer doesn’t pay. The sooner you call, the sooner and more likely you’ll get paid.

Consider upfront payments. For some customers or industries that are chronically late payers, requiring upfront payment can be a great alternative to ditching them altogether. It’s easy these days to set up a merchant services account so you can start accepting credit cards as payment.

To learn more, take a look at these helpful tips from the National Federation of Independent Business.

 

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