Businesses need customers to survive; without customers, business won’t experience growth or success. So knowing that we need our customers to survive, how can we get them to pay their invoices on time without damaging these important relationships?

1.     Ensure that the same tone is conveyed throughout your customer’s purchasing experience. If stellar service is given when the product is purchased, stellar service should be given when a payment is received.

2.    Create a written late payment policy and ensure that all of your staff are trained on and understand the policy.

3.    Ensure the payment policy requirements, including punitive actions, are discussed with the customer at the time of purchase.

4.    If you offer credit terms, establish the payment due date in advance and in writing. The easiest way to accomplish this is to insert the payment terms and conditions within the purchase agreement.

5.     Reward your customer’s for prompt payment. If a customer can get a payment to you within 15 days, you may consider providing a 5-10% discount on their next order. If a payment is received within 30 days, you may consider a 3-5% discount.

6.     Remind your customers that payment is considered late, even one day after the due date.

7.     Manage your Accounts Receivables regularly, so you know in advance when a payment is not going to be timely.

Your business is only as good as your payment policy. In order to present a professional and successful image, you have to have a professional payment policy. Your customers should value your services as much as you their business.

Leave a Reply

Your email address will not be published. Required fields are marked *