Are you tired of chasing up late paying customers? Being owed money from customers can be frustrating and can have a knock-on effect on your ability to pay your own suppliers. Here are five tips for helping you to deal with late paying customers.
Make expectations clear in your contract
First of all, you should make it clear in your contract how and when you want to be paid. This could help you later down the line if a customer claims they weren’t sure about the payment conditions. You can also outline condition such as charging interest for overdue payments or even charging customers a deposit at the beginning of the project, only giving back the deposit if they follow contract conditions and pay on time.
Stay on top of payments with software
You may want to consider how you’re billing your customers too. Software can automate payments and give you an easier means of tracking clients that haven’t paid. You don’t want to chase up a customer only to find out you’ve forgotten to invoice them, nor do you want to find out six months down the line that a customer hasn’t paid you because you weren’t keeping an eye on incoming payments. There are many niche programs out there – if you click this link you’ll find one suited purely to medical billing. Shop around for the right software for your needs.
Accept credit card
You may be able to increase the likeliness of getting paid on time by expanding the types of payment you’re willing to accept. For example, accepting credit card can be very useful if you charge large amounts for your services. Companies that may not have the money available can still pay you with credit – accepting credit card will result in a small charge for yourself, but it could be worth it. Another option could be to allow a payment plan that allows customers to pay in smaller instalments. All in all, do whatever you can to make it easier for customers to pay you.
Use invoice factoring to tie you over
If a customer hasn’t paid you, it’s possible to take out a special form of loan known as invoice factoring. A lender will give you the money that you are rightfully owed so that you can pay your own bills in time and not get in arrears. You can then pay the lender back once your customer has finally paid you.
Know when to take legal action
When it comes to payments that are long overdue, it’s possible that you may be able to seek legal action to get the money you deserve. There are many debt collection agencies that you can hire such as this one to help reclaim the money you’re owed. This isn’t something you can do immediately, and you may have to have first sent out multiple warning letters. It could be worth talking to a solicitor to help you know when to take legal action.
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