To maintain a healthy business, it is important to ensure that payments are made on time. But, you will always run into at least one client who delays the payments, not just once but consistently many times. If this bad habit of your client continues, it may become a problem for the normal functioning of your business. You, as the business owner or manager, need to undertake proactive measures to correct the situation. Fortunately we bring you with some very effective strategies to deal with clients who tend to delay payments. Read along the following tips and tricks in order to make you receive payments on time.
You could begin by auditing your invoice process. There may be chances that something may be wrong with it. If you don’t have a completely documented invoicing process in place, you need to start with that. You will also be required to maintain consistency when you issue invoices and also maintain a clear communication between different departments. You could also issue strict terms and conditions to identify defaulters. You need to make sure there is a strict follow up process in place in order to avoid your invoices getting lost or ignored by your clients. Firm protocols should be in place and your employees should make sure they are following up, on paper, in real time. Implementation should be consistent in order to avoid your results being compromised.
If your client is due by more than a few days, you could issue a formal warning about the payment. Give them a friendly reminder of how they can carry out the payment. If this doesn’t make it work, then send out some follow-up mail, letters or phone calls. If nothing seems to work, you could issue them a warning that a legal action can taken against them if the invoice remains unpaid.
Sometimes businesses have to deal specific clients who can be a pain. On the other hand there are other customers who are always on time when it comes to payments. So, you could change your terms for your best and worst clients. If a client habitually pays late, you could figure out a manner to penalize him/her. Charge a late fee.
Sometimes a client is not able to pay on time due to lack of payment options at the moment. So, make sure you provide them with alternative payment plans, like a weekly installment plans or smaller invoices.