Late payments can have a dangerous knock-on effect to your business’ cashflow, as well as costing you time and money to chase them up.
The safest way to do business is always to take money upfront. Failing this, it’s important to take whatever measures you can to encourage customers to pay you on time, every time.
Here are our 5 top tips for encouraging swift payment.
Be flexible with how you’re paid– Make it as easy and convenient as possible for your customers to pay you. By offering multiple payment methods including card, cheque and online payments you have a better chance of being paid on time.
Offer a discount for prompt payments– If a customer knows that they will gain from making the payment swiftly they are more likely to remember to do so, particularly if it is a monetary gain. The discount only needs to be small and will be worth the time and hassle it will save you in chasing debts.
Be clear about your terms– Be clear with your terms and expectations from the start. Ensure that your expected time to payment and any late payment penalties are clearly stated in your contract and on every invoice you send.
Forge good relationships – Building good rapport with your customers is often key to keeping things running smoothly. Learning how to communicate clearly and understanding each other’s requirements can help you to work together amicably. Customers are far more likely to respond positively and quickly to payment requests from a business they’re on good terms with.
Stick to your terms– When it comes to your payment terms, never waiver. If you are providing a product or service to a customer you deserve to get paid for it, and on time too. If you offer an extension once, then you are setting a standard for leniency. Implement payment terms that are fair and then stick to them firmly.
If you need help with debt recovery, speak to our team of experts here at Churchill Recovery Solutions by giving us a call on 0333 320 0748.