In the spectrum of business customers, the honest customers who pay their debts immediately and in full without aggravation are on one end. Most customers, but not all, are honest. At the other end of the spectrum, you have “bad pays”.
However, until your client notifies you of such, and his reasons are legitimate, you can assume that he is avoiding payment.
There are certain strategies you can implement that will help you to avoid the burden of non-paying clients.
- ESTABLISH PAYMENT GUIDELINES – Let clients know from the start what your guidelines are. Once you’ve established these guidelines, it is imperative that you stick with them.
- IMPLEMENT A CREDIT POLICY – Your credit policy should be a living document; review and update it as you expand your business. I suggest that it be in writing. Not only should each of your customers receive a copy then sign that they have read, understand and accept it on an annual basis, all of your sales, finance and credit employees should do the same.
- HAVE CLEAR INVOICES – Be sure that your invoices are numbered, that the billing terms and due date are visible and clear, and that they are sent to the correct person.
- PROVIDE INCENTIVES FOR PROMPT PAYMENT – Give your clients a reason to pay their invoices as soon as they receive them, such as discounts for early payment and charging interest on overdue accounts.
Please visit Dynamic Legal Recovery’s website or call us at 877-777-7564 for your complimentary evaluation.