You’ve built a successful company and you deliver the highest quality products and services. The majority of customers are satisfied and always pay promptly. Nonetheless, you’ve had some issues with delayed payments.
Not being paid for the work you do can be very frustrating and it can also cause problems for your company. As with most issues, prevention is better than cure. How can you encourage your customers to pay on time?
Use technology to your advantage
While cash and checks are used in some cases, payment methods have largely switched to the online realm. Does your business currently reflect this? You may have customers from across the country or even the entire world. Are your current payment methods too restrictive?
By offering a variety of payment methods you might just be able to cut down on missed and late payments.
Be proactive with invoicing
Many businesses wait until payments are missed before sending reminder invoices. As long as your tone remains courteous and professional, then you can do this in advance of the payment date.
Not everyone who misses a payment intended to do so, and a friendly reminder can help ensure that the balance is settled before it becomes overdue.
Put all agreements in writing
Some of your customers may have been with you for several years. It can be tempting to be less formal with repeat customers, but this can also backfire. Having written agreements in place with all of your customers can help ensure that all payments are made in a timely manner, whether the customer is a new client or a repeat customer.
Being owed money can be frustrating and it can also impact your bottom line. If you’re struggling with collections, seeking legal guidance can help you to get everything back in order.