Things Small Businesses Should do when it comes to Payments
Most of your customers are capable of paying you within a reasonable period of time. But sooner or later - either because of the economic crisis or misfortune of their company, you will have to deal with customers who pay very slowly or not at all. Not getting paid is one of the most challenging aspects of running a small business. And it can become risky when not getting paid affects your business’ cash flow.
Here are the three things small businesses should do when their customers do not pay on time:
Take partial payments in advance.
If you are worried about not getting paid for your product or services, it is good to ask for a deposit upfront. This is a common business practice for higher ticket goods and services; no honest customer should be offended by such a request. Also, be sure you discuss your prices and payment requirements with new customers before you provide them your products and services.
Accept payments online.
Customers like it when they can choose how they will pay for your product and services especially these days where precautionary measures are always observed. By accepting digital payments, you can accommodate those customers who choose to use common apps like Venmo or PayPal. And by being flexible, the easier it would be for your clients to pay you on time.
Send reminders and follow-ups.
Set up a system for flagging late payments if you need to and a standard procedure for contacting your customers when the payment is late. The quicker you follow up on a missed payment, the higher your chance of being paid. You can also phone call your customer. Sometimes the person either forgot or overlooked to see the bill, and a fast phone call is all that is needed. Do not forget to be friendly and polite when talking on the phone.
To ensure that you are getting paid, evaluate your potential customers before offering your product and services. This will help you figure out if they are worth pursuing.
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Written by: Office Evolution Houston Energy Corridor
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