Ways To Avoid Payment Problems With New Customers
Extending credit is a good way to win customers and help them spread the cost but it can open up a whole new set of problems actually getting the money in.
Also confusion over when payments will be made by new customers can be worrying for many businesses who set out to offering their customers credit terms. Fortunately there are ways to reduce the risk of not getting paid by taking a few simple precautions from the beginning of the customer relationship.
The first thing to do is identify how your customers wish to pay before you begin providing them with services. Not all your customers will be happy to make an upfront payment. Some will prefer to pay in instalments or pay when the job is done.
If the service you are offering requires a lot of time and resources, then remember that you could be investing a lot of both and not getting paid for it if your terms are unclear which is why it is important to have a binding agreement in place or you take a 50% deposit up front to at least cover some of your costs.
Another important thing you should do is run a credit check on your customers. There are plenty of ways to do this online and if your new customer has a bad credit rating you will know about it before entering into an agreement.