businesses, particularly small ones, suffer from their customers paying
them late. I'm not talking about 'bad debts',
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10 ways to get paid more promptly
Many businesses, particularly small ones, suffer from their customers paying them late. I'm not talking about 'bad debts', just slow payers. Credit control is a key business issue. And slow payment can cripple a business's cash flow. Here are some ways to get your money in sooner:
Did I say 10 ways? Well, here we always deliver 10 per cent more than we promise! Do you?
Perry P Rose, one of our visitors to the site, has added his own 'getting paid' idea. He writes:
"I had three accounts which were fourteen months overdue and our accounting department was ready to write them off as bad debts. I decided to give it one more try over the phone and talked directly to the person responsible for writing the cheques.
In all three
cases I reminded them that they had already sold my product and used the
money for their own business while I was still waiting for a cheque. I
then asked each of them to admit to me "this is not fair". Once
they actually said the words themselves I received the cheques within
seven days. Make them say out loud that not paying you is "not fair".
When they hear it from themselves they cannot ignore it!"
Another contribution (popular subject, this 'getting paid'!) comes from Lenny Laskowski, President of LJL Seminars and author of "Dynamic Presentation Skills for the Business Professional". Lenny writes:
"I run a seminar & consulting business and one thing I have done to dramatically increase my business while at the same time get paid up front before I provide the service is to offer a 10% discount if paid in full before we start. I also offer other discounts for multiple bookings when booked at the same time. I don't give flat out discounts; that devalues your fees. My discounts are purely a reward for paying me up front. By paying me up front, they receive a discount and I receive use of their money."
"We have $5,000-$50,000 per sale. I say to the client, would you prefer to pay 50% on issuing the purchase order with remaining 50% due 30 days after delivery; or Would you prefer full payment due on delivery of goods? I always give a client two options. If he wants a different one he will suggest it. We used to have a real problem with payment (we billed 30 days after delivery) until I came up with the new payment schedule."
Michael Murphy of Northwest Economic Indicators told us:
I had trouble designing invoices. I looked at a utility bill and realized that, like them, I could get paper with a perforation going across two-thirds of the way down. (My firm publishes a newsletter and I had the printer perforate a ream of paper.)
Now my invoices say to keep the top two-thirds and return the bottom third with payment. I also had the perforation put on a different color paper. I put a sheet of the colored paper and regular paper in my printer and print out two copies of my invoice. The white copy is my file copy.