Learn How To Deal With Late Payments
In business, there are clients who always make late payments with the conviction that it’s all good as long they eventually pay up. The problem with this conviction is, business owners often have a reason for requesting for payment at a particular time.
As a business owner, late payments might disrupt plans and arrangements you’ve made in advance for your income. For situations like these, there are some tips you can take to help you handle late payments. These tips include:
Create a relationship with your clients
Creating a relationship with your clients does not mean you have to be best friends with them. No. It simply means, try forming a more personal relationship with them. This way there can be some level of understanding which will make the payment process more pleasant. When you have a relationship with your client, you feel at ease asking for payment and they also feel obligated to meet the payments on time.
Make payment terms in advance
Making payment terms in advance is a great way to avoid late payments. This way you and your client can sort out how much the payment will be and when it’ll be due before you commence work. When payment terms are made in advance, the client will most likely have the money for payment ready when you deliver the product or services.
Choosing to make payment terms after the work is done comes with a lot of problems. Like the client trying to bargain after the work has already been completed or taking longer to pay up. Advance planning is always a good way to get everything under control.
Make organized and efficient invoices
An organized invoice is very important to avoid late payments. Make sure all the details on the invoice are correct and updated. Wrong invoices can be corrected but it will definitely affect the professionalism of the entire process. Especially if it’s an error where an addition is made to the client’s bill. Incorrect invoices can also lead to late payments.
After you’ve looked through the invoice to ensure it’s correct, send it on time. The sooner the client receives their invoice, the sooner they can make their payments.
Request payment immediately the deadline expires
Invoices come with deadline inclusions to ensure the clients pay on time. Despite this deadline, some clients might fail to make the payment within that period. Immediately the deadline passes and a client does not pay up, make a request for the payment. Let your client know that you are not going to let the payment slide.
While requesting payment the first few times, exercise patience. Try not to be rude or confrontational in order not to ruin your business relationship with your client.
In order to address late payments, make use of phone calls instead of emails to communicate urgency. Also don’t be confrontational or rude. Be patient and understanding – if the situation requires. Finally, ensure your invoices are correct and updated. These steps will definitely make a good client hasten up with payments.