2 posts tagged “help”
Tips for getting late payments paid earlier or on time
Don’t listen to the excuses
You already know most of them, “Can you resend the invoice”, “it’s passed
for payment” and ‘the cheque is in the post’. Get invoices paid directly
into your account. Your customer can not themn use the excuse that the cheque
may be lost or that it is waiting for signature. You can also list a late payer on sites which offer business debt collection services, websites which are cheap and cost effective.
Work at it
Don’t think that businesses will pay you on time. You need to build
relationships with people who hold the purse strings in companies which are
slow in paying. Phone them, talk to them, smile on the phone to them, get them
on your side. Be like a rat up a drain pipe and pester them in a nice way.
Before you know it you will be the first to be paid. A phone call in
advance of the payment date confirming that you will receive payment puts your
contact on the spot and he might not want to let you down. Paying direct into
your bank is good, meet with your customers and press them into this
Ask for interest and ask for prompt payment
It is possible and legal to ask for interest on late paid invoices.
Encourage prompt payment, if your pricing allows , hard in today’s climate,
offer a prompt payment discount and link it in with Bacs electronic payment.
You will see a positive cash flow with money going into your account quickly.
Not waiting for money to clear means that you can use it immediately and don’t
have to rely on costly loans.
Do as you ask
Don’t get a bad reputation yourself as a bad payer news travels fast so pay
your suppliers on time.
Is a business a bad risk ?
Check them out through debt recovery companies or associations they may be in, check out Companies
House which can provide reports on line to you. Prevent risk by doing a credit
risk check on all new potential customers. risk by performing a credit
check on all new customers. Beware of companies which give may give
referees which provide a big proportion of their supplies, ask what percentage
they are responsible for. That supplier may be paid on time every month because
not to do so could influence deliveries. Business debt collection is hard, one needs to be tough to make it work.
Internal Cost of Late Payment
Some companies are paying for dedicated staff to chase late payment others are not so fortunate. On average the internal cost for those not able to afford dedicated staff can be up to 20 lost working days per year.
More and more businesses are finding that they are spending more on debt recovery collection than ever before. Those companies which don't chase late payment find themselves getting deeper into debt and possibly closing when they failed to pick up on the fact that a customer was on it's last legsThe cost of funding staff to chase late payment is spiralling.
Is a business a bad risk ?
Beware of companies which give may give referees which provide a big
proportion of their supplies, ask what percentage they are responsible
for.Check them out through any associations they may be in, check out Companies House which can provide reports on line to you. Prevent risk by doing a credit check on all new potential customers. risk by performing a credit check on all new customers. That supplier may be paid on time every month because not to do so could influence deliveries.
Work at it
Don’t think that businesses will pay you on time. You need to build
relationships with people who hold the purse strings in companies which
are slow in paying. Phone them, talk to them, smile on the phone to
them, get them on your side. Be like a rat up a drain pipe and pester
them in a nice way. Before you know it you will be the first to be
paid. A phone call in advance of the payment date confirming that you
will receive payment puts your contact on the spot and he might not
want to let you down. Paying direct into your bank is good, meet with
your customers and press them into this.
Don’t listen to the excuses
You already know most of them, “Can you resend the invoice”, “it’s
passed for payment” and ‘the cheque is in the post’. Get invoices paid
directly into your account. Your customer can not themn use the excuse
that the cheque may be lost or that it is waiting for signature.
Ask for interest and ask for prompt payment
It is possible and legal to ask for interest on late paid invoices.
Encourage prompt payment, if your pricing allows , hard in today’s climate, offer a prompt payment discount and link it in with Bacs electronic payment. Threaten to put the matter in the hands of professional debt collection agencies. You will see a positive cash flow with money going into your account quickly. Not waiting for money to clear means that you can use it immediately and don’t have to rely on costly loans.
Do as you ask
Don’t get a bad reputation yourself as a bad payer news travels fast so pay your suppliers on time.
