Getting Paid On Time - 7 Tips For Every Small Business

| Posted: 13-05-2008 | Comments: 0 | Views: 7 | Rating: (157)

(?)

So you have completed the job. After many changes and communication breakdowns, you delivered on time and exactly to specification. Now you sit and wait to be paid. Thirty days later, you're still waiting. Sixty days later, you're almost begging. Ninety days later, you are biting off your fingernails and tearing your hair out. This has happened to every small business that offers credit to their clients. How can you get paid on time and maybe even early? Here are my top seven tips for getting paid on time:

1. Do thorough credit checks before offering credit. Ok, I know that many clients will assume that you should automatically give them 30 days credit, no questions asked. That might work great for their cashflow but not for yours. Have every client complete a credit application, perform the checks and get at least two trade references. Credit is a privilege, not an automatic right.

2. Settle any disputes as quickly as possible. If there are any problems, don't bury your head in the sand or procrastinate. Deal with them as soon as you can. Show your client that you are as committed to solving the problem as you were to making the original sale. Not only will this help you get paid on time but it will also strengthen your relationship with your client.

3. Send out invoices promptly. By this I mean, on the day of despatch of the goods or completion date of the service. If you can include the invoice with the goods do that but also send a copy to accounts. Sometimes if you send an invoice late, the accounts department will only pay 30 days from receipt instead of 30 days from the invoice date. Don't allow this to happen.

4. Call to make sure that the invoice was received. Make a gentle call ensuring that the invoice has been seen and did not get "lost in the post". This technique is usually recommended for first time clients. Your regular clients might get a little peeved if you do this every single time.

5. Get the name of the person in the accounts payable. You should capture this information on your credit application form. Often, when you call to chase payment, you might speak to more than one person and get different responses. If you deal with the same person every time, they are accountable if the payment does not arrive when promised. If they tell you that the financial director has to approve the payment, get her name too.

6. Call on the day when the payment is due and find when it will be made. Don't be aggressive or demanding this early in the collections process. Calling early can encourage a slow payer to deal with your invoice promptly.

7. Offer a discount for settling the bill early. A small discount such as 5% if settled within 30 days or 10% if settled within 7 days can be very appealing for clients who want to make additional savings on the transaction. Of course, only offer this if your profit margin can take the hit.

My last bit of advice: don't be afraid to pick up the phone and talk to your clients about payment. Often, we might be timid about asking for payment because we don't want to upset our clients. But remember, a client who doesn't pay, no matter how great a company they may seem, is useless to your business.

Rate this Article:

Current: 5 / 5 stars - 1 vote(s).

Article Tags: article, reprint

Article Source: http://www.articlesbase.com/business-articles/getting-paid-on-time-7-tips-for-every-small-business-412797.html

Print article

Send to friend

Publish this Article

Author feedback

About the Author:
Tara Roitman is the marketing manager for Media Heaven Ltd - full service experts in CD duplication, DVD duplication, CD Packaging , and USB memory duplication

Submitting articles has become one of the most popular means of generating quality backlinks and targeted traffic to your website. Join us today - It's Free!

Article Comments

Add new Comment

Got a Question? Ask.

Ask the community a question about this article:

Frequently Asked Questions

Any reviews on Training anad generalization of ...
By: Lady Day- Mack | 19-07-2008
Any reviews on Training anad generalization of affective behavior displayed by youth with autism Gena, A., Krantz

Oprah Winfrey Biography book/article
By: Cannucks | 16-05-2008
Looking for the best Biography book/article on Oprah Winfrey

Can a breast support garment help in the ...
By: mckinnis | 22-04-2008
can a breast support garment help in the prevention of cysts, tumors or breast cancer?

Correcting From Wikipedia to Google Earth
By: andywass | 31-03-2008
How do I get a Wikipedia article which I have corrected on their main site revised on Google Earth . Its 2 weeks since I corrected it but Google Earth is still showing the incorrect version.

I have not heard anything on the condition of the ...
By: ALM | 05-03-2008
I have not heard anything on the condition of the young child. I keep he and his family in my thoughts and prayers. This article says nothing about his condition except that he was listed in critical/stable condition, yet the headline says "KILLERS" of 6-yr old boy. Is he still critical/stable, or did he pass? Please let me know at trinityresources@yahoo.com.

Is it the complete article?
By: curioso | 02-03-2008
There is not missing something below in this article? I could think this is only the first page of a larger article. is it?

Q&A Powered by:

Latest Business Articles

Water Damage & Solano County Flooding
By: Mark Decherd | 26/07/2008
If you live in Solano County, it's imperative that you are aware of the flood potential and understand the risks. The wet months run from November through April. During these months, you are more likely to experience flooding.

Is it Time to "reset" Your Business?
By: Linda Feinholz | 26/07/2008
When is 'too much to do' finally enough? I mean enough to have you reach out and slap your personal and business 'reset' button? Do you ever feel like you're buried under overwhelm? Sometimes prioritizing the to do list isn't what needs to be done.

15 Ways to Improve Your Closing Ratios and Sales Presentations
By: Katrina Sawa | 26/07/2008
It is not enough to do launching effective marketing campaigns to obtain new customers and to continually market to your existing database for more referrals and repeat business. In addition, you must be able to ask for and close the sale. Otherwise, it is a waste of time and money!

In Searching for Cost Reducitons, Look at Total Cash Flow Costs Rather Than Accounting Costs
By: Donald Mitchell | 26/07/2008
If you are a privately held company, look to reduce overall cash costs when considering alternative cost reductions, rather than the impact of reported earnings.

The More Trust, the More Time to Succeed
By: Andrew Cox | 26/07/2008
Bill Oncken, in his book Managing Management Time, says that the more trust you have with your "universe " of people, the more time you have to do the things that lead to success. Trust is hard to earn. Once lost it's hard to regain. It's the most precious asset in any relationship - at any level - at any time. Read on to see how a successful Division President builds trust.

10 Tips on the Issues With Selling Professionals
By: Drew Stevens | 26/07/2008
The world of professional selling is rich with information related to selling skills, sales training and techniques to assist professionals. However, after much rhetoric and information I am finding something completely different...a problem with selling professionals.

India - the Next Economic Powerhouse
By: Paul Hata | 25/07/2008
India is one of the fastest-growing countries in Asia. In 2006, India recorded a 1.2% of world trade share overall. The stat was picked out from WTO. The growth is mainly due to the liberalization that took place in India way back in 1991. Ever since then, there's no looking back.

Customer Service Toolkit
By: Drew Stevens | 25/07/2008
All businesses make money, yet those that are customer focused are more profitable.

More from Tara Roitman

CD and DVD Packaging: How to Reduce the Carbon Footprint of Your Media Packaging
By: Tara Roitman | 23/06/2008 | Computers
In the past few years, "going green" has become very important for almost every type of business. The CD and DVD packaging industry have been no different. In fact, promoting environmentally friendly products has become a major marketing focus. So what are your options if you want to package your...

Small Business Owners: Listen to Harry Nilsson and Keep Your Business Alive
By: Tara Roitman | 17/06/2008 | Management
One is the loneliest number that you'll ever do, Harry Nilsson wrote and he was right. If you're in business, especially if you're a small business, one of anything is a sign of trouble. You should never have one product, one supplier, one main client or one marketing method. If you...

What Is Blu-Ray And Why Should You Buy It?
By: Tara Roitman | 25/05/2008 | Computers
In February 2008, Toshiba decided to pull the plug on the HD-DVD format. This ended the format war that was predicted to last much longer. Now manufacturers have the unenviable task of educating the consumer about Blu-ray and convincing them that it is a worthwhile purchase. When DVD hit the...

Article Categories

Article Marketing

Article Notepad

Stop Duplicate Content

Term Papers

Need Help?

Sign up for our email newsletter

Receive updates, enter your email below

Use of this web site constitutes acceptance of the Terms Of Use and Privacy Policy | User published content is licensed under a Creative Commons License.
Copyright © 2005-2008 Free Articles by ArticlesBase.com, All rights reserved. (0.34, 8)