Are you always paid on time?

Have you ever been in the situation where you are waiting for a client to pay you?  You are sure they got the invoice ok…. They seemed pleased with your work.

So why oh why have they not paid yet?

Maybe it’s because you didn’t set the ground rules at the beginning?

Typically, most happy customers want to pay promptly if they can.  Sometimes it’s because they do have cashflow issues or that they operate a pay in 30 days when you thought you would get paid straight away.

Whatever the case, the situation you find yourself in is that you haven’t been paid as YOU expected.

I have seen invoices with “thank you for your prompt payment” on, this works… Sometimes.

The one thing that many business owners find hard to deal with is the money the customer owes them.  Why not deal with the process for payment of your product or services at the beginning of the selling/buying relationship.  Ask how your customer wants to pay, agree the rules beforehand.

If you do then get the situation where the customer has not paid, there are constructive ways of dealing with accounts receivable.

A series of escalating calls and emails (letters)… If you get to the end of this process and have still not been paid, then the next steps can be a bit more involved and can lead to a loss of the customer; not your money.  You were probably not going to be working with that customer again anyway.

One of my clients put a huge customer on stop, after an initially worrying time, the customer has fallen in line with my client’s agreed payment schedule… and they continue to work together for the benefit of both businesses. It’s all about how you deal with these situations.

The final stage may be a visit to the small claims court.  Most customers pay up at this point.    It’s all about sticking up for yourself … and making sure your customers like and respect you too!

If you would like to develop a process for managing your payments from the start, call me on 07766 080770 or email alex@alexpetty.biz

About alexpettybiz

We educate and inspire business owners to realise the potential in themselves and their business. The way we do it is to help make businesses easier to run, more profitable and more fun. We believe in coaching at every opportunity to help business owners succeed. What can we do for you?
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