13 Smart Tips For Collecting Payments From Customers

What if in your business you have given credit? I recommend to give credit as less as possible. If in your business you have to give credit discuss your payment terms beforehand. Take advance if possible, don’t be shy and afraid. People usually think that if I force the customers for payment I won’t be getting any orders further. But be firm and have confidence, if there is any lack of confidence in your marketing team or your marketing executives or from your sales agent the customers are going to take advantage of this weakness. Here are some tips to overcome this weakness and to collect the payment timely from customers.

Collecting Payments

  1. DISCUSS PAYMENT TERMS BEFOREHAND”

Delay payments from customers will waste your time and will cause a lot of problems. You may face shortage of funds.  You may keep calling; you may keep visiting your customers. In the beginning take care to deal with only those clients who are accurate and punctual in giving payment and do not make any delay.

  1. CHOOSE THE BEST PAYMASTER:

What you can do is to enquire a about the one with whom you are dealing. Ask his vendors about punctuality of the payment. Always make a deal with the person who shows honesty with the payments; even though if he takes less material.

  1. SEND INVOICES RIGHT AWAY:

You have payment terms of 35 days, 40 days, and 60 days. What you do, you know you will get payment after 60 days so you send your invoices late and when you send your invoices you will definitely get late payments.  As soon as you send the material, send the invoice at the same time.

  1. FIX A CREDIT LIMIT

Before making any deal, fix an amount that I have to give credit of $50,000 or $70,000 or $100,000 and decide not to exceed this amount before minimum 5 transactions because during this period you will judge his behavior and nature.

  1. GIVER PERIODICAL REMINDERS AND HAVE STRONG FOLLOW UP SYSTEM

You should give periodical reminders and should have very strong follow up system. If you do these two things from the beginning punctually, you will keep reminding him for the payments. But while doing so you have to be very humble. Do not call yourself, instead ask staff to make calls via Whatsapp or send e-mails time to time.

  1. Never BE RUDE:

Don’t shout, don’t abuse. Always remember that if you have given credit of say $100000 then cost of one abusive word will be equal to half of the credit amount and cost of two abusive words will be 100% bad debts.

  1. NO LENIENCY:

Never forget leniency for once will set a landmark for future. If once you accepted the delayed payment this terms will be set forever for you. Don’t forget to keep a good law firm.

  1. BE OPEN TO HEAR THEIR REASONS:

Be a good listener to the problems of your customer. There may be some genuine reason due t which he is unable to make your payments.

  1. SEND UPDATED INVOICES IMEEDIATELY:

Sometimes the customer makes excuses that I have lost the bill, I have to reconcile the bill, as soon as you hear this immediately send the updated invoice copy.

  1. SHOW INTEREST FOR FUTURE BUISNESS:

If you have decided that you will no longer wants to do any sort of business with any customers then always control your words and expressions. Never let them know and not even be conveyed about your plans, otherwise your payment will be delayed or even you may not get your payment.

  1. LET YOUR MARKETING TEAM HANDLE IT FIRST:

Never show your face to your customers. Instead, let your marketing team handle first unless the payment becomes much delayed.

  1. COLLECTING AGENCIES:

There are many collecting agencies that keep giving remedies to their clients about the stuck payments. You can hire one of those agencies and they will charge you 10%, 20% or 30%   commission.

  1. FILE A LAWSUIT:

Avoid court and try to settle out the issues out of the court, but if you do not have any other option left or nothing else works then go for it. Keep a good reputed law firm.

Author Bio: Abigail Kent is a passionate blogger who tend to write on trending topics. She’s currently working at Discount Codez, an online coupon and voucher codes site.

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