Cash flow is important to all businesses, especially in this economy. It is frustrating to deal with that handful of customers who are slow to pay. Here are some simple proactive techniques to get those customers to pay a little sooner, courtesy of this article by Mike Michalowicz for the OPEN Forum:
- Set the stage early. Get your payment policy out in the open at the very beginning.
- Establish an internal process for payments. Be sure that a formal payment process is followed every time and for every customer.
- Include a self-addressed stamped envelope. Make it easy to send the check back to you.
- Take credit cards. Although you may have to pay a 2 to 3 percent credit card fee, having 97 percent of the cash right now is far better than having 100 percent of it a year later. (Tribute recommends 3Delta Systems for secure, PCI-compliant credit card processing.)
- Disarm the excuses. Call the customer five days after you send out the invoice to confirm that they have in fact received it. Ask if they have any questions or concerns about the invoice and make sure they are aware the payment is due in 30 days.
You can read the full article here.
Can the wording on your invoices get you paid faster? Check out our blog post from August 2011 for more details on an interesting study by the FreshBooks company, and instructions on how to change this wording within the Tribute and TrulinX software.
You may also find these other blog posts helpful: