10 Ways to Get Your Customers to Pay on Time
Before you outsource to a reputable debt collector or litigation agent, there are a few things you can do yourself, to get your customer to pay you on time, rather than have the matter run into a delinquent debt.
Here are 10 quick ways you can encourage your customers or clients to start paying you on time:
1. Do a Credit Check
If you are going to offer credit, do some snooping to find out if your new customers are worthy of your time and effort. Don’t bother running one for small transactions, but if you’re entering into a long-term relationship or one with a large impact on your bottom line, run a credit check. It might not guarantee payment, but it can help you avoid problem clients and customers up front. Contact your potential client’s past business partners and make sure those partners had positive experiences and were able to get paid in a timely manner. Invite your potential client to do the same with your past business partners as well.
2. Get Money Up Front
Avoid offering credit altogether and get your money paid at day one. This can apply to either a product or a service offering. If you are good at what you do, your customer will be willing to pay in advance. If your new customer won’t pay in full upfront, get an agreement for them to pay half the bill at the onset of the project and the other half after completion as a sign of good faith.
3. Invoice Your Client as Quickly as Possible
If you do offer credit, you should send your invoice to your client as soon as possible. Don’t wait until your bookkeeper is ready or your accounts department gets around to it. Automate your invoicing, using products such as Xero, MYOB, Debtor Daddy or Debt Chaser. By Automating the process, your invoices will be sent out automatically, as soon as you have completed your project or provided your products.