Know who you are selling to. Do your due diligence.
Make sure you know who you are trading with, are they a sole trader? Maybe a limited company? Do you have the names of the proprietor or Directors. Run a credit check on the customer and ask them to fill out a credit reference form.
Set clear terms for your customer.
Ensure your customer knows exactly when they should be pay and what will happen if payment dates are missed. Your terms should be be sent to your customer, do not always rely on the spoken agreement.
Send your invoices in a timely manner. The sooner you send a bill the sooner you get paid it is as obvious as that. One major reason for slow payment is late or inaccurate invoices. Build in time for you to check all invoices are accurate so there are no excuses for slow payments.
Make it easy to pay you
Offer various payment methods, many businesses now use online banking, others still prefer to send a cheque. There are plenty inexpensive options now for all size of businesses and worth exploring.
Be good at chasing payments. Make effective credit control calls. Do not jump to negative conclusions with first time late payers as mistakes do happen. Keep up communications with your customer. At imperium we believe, handled effectively, telephone credit control calls are great opportunity to remind customer of the need to pay on time and can even promote future sales. Handled badly calls can alienate the customer and cause friction.
After discussions with the customer if payment is still not forthcoming maintain a well defined process to chase clients. Do what you say you are going to do when you say you are going to do it. Each call and action should build momentum.
Watch for the warning signs.
In most circumstances payment problems will not occur without some warning. If you are able to spot the warning signs then you won’t be caught off guard. Be aware of who the slow payers are and where the risks lie.
If you would like to more about effective credit control calls, watching for warning signs or would like a one to one chat – Contact Andrew via email@example.com