It almost goes without saying that getting customers to pay on time is critical for your business success.
Having run a web marketing and SEO consulting firm since 2008 I can tell you that waiting on checks after invoices have been sent out is frustrating.
And more than a little nerve racking at times with payroll and overhead to meet.
So what can you do to make sure your customers pay you on time?
Tips to speed up your payment process
First, consider what “terms” you’re offering.
If your invoice states that the terms are 30 or 60 days, then expect your customers or clients to pay at the very last minute. I used to offer 30 days, but then reduced that down to 7 days.
And it made a big difference.
Now, if your customer or client is a larger company or corporation you may not have a lot of wiggle room here… after all 30 days terms are pretty much standard.
The next thing you can do is accept credit card payments where possible.
This is especially effective if you have clients or customers who pay you a set amount each month for your services, since this allows you to set up automatic recurring billing. By automating the entire process you actually take care of two different issues at the same time — you speed up cash flow since funds are deposited into your bank account 24 to 48 hours after each day’s transaction, and you don’t have extra administrative work to handle.
Sounds great, right?
Finally, deliver your goods and services on time, and make sure your invoices get sent out right away.
Late invoices lead to late repayment.
If you’re late getting invoices out the door chances are your customers are going to be just as late, if not more so, to repay you. It’s just a fact of human nature, so be sure to mail out invoices right away so that they land on your customer’s desk as soon as possible.
Consistency is key.
By having a billing system in place you should eliminate some (or most?) late payments.
However, even the best system can’t guarantee every customer or client will pay on time. Over the years I’ve had a few people “stiff” me for payment. In the majority of cases they simply didn’t have the money to pay for services rendered.
Some people I contacted and made terms with, accepting partial payment.
In other cases I chose to write off the debt.
And finally, for a handful or clients I settled on contacting a collection agency. After all, when 2nd and 3rd notices don’t get the job done, you can try to handle debt collection in house. In my case I just didn’t want the extra work and hassle. Plus, debt collection must comply with all state and federal collection laws, and in today’s litigious society I didn’t want to assume the liability.
Does that make sense to you?
Find a debt collection agency today
To find a collections agency that specializes in helping business likes yours, simply request a free services quote from qualified and reputable companies.
Click the link and compare free collection agency quotes today.
Or you can follow the link for our list of collection agencies and research providers for yourself that can help you get set up for your State or Metro area.
Because, when you get right down to it, you really have 2 choices:
- continue doing what you’re doing and hope for a different result
- get outside professional help and collect some, or all, of what’s rightfully yours
After all, it’s your money…