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6 Useful Tips On Chasing Payment

Written by: Linda Mattacks

Article Overview: The best way would be to avoid the necessity of chasing payment altogether by only providing the product or service on receipt of money, or offering attractive discount savings to encourage prompt payment. However, if neither of these options is available to you or applicable to your business, ensure that you make one to one contact…

6 Useful Tips On Chasing Payment

6 Useful Tips On Chasing Payment

Provided you know your own house is in order (see the article Do Your Customers Pay On Time? 5 Check Points For Upfront Ease Of Payment if you’re not sure) and there is no reason that you know of why payment should not be immediately forthcoming, don’t be afraid to take these tips on board and state your case to errant customers.

1) Be prompt in chasing - you’ve provided the service or product
2) You’re not begging for a handout - You are entitled to the money by the agreed time
3) The longer you leave it to chase your money, the further down the queue you’ll go when any supplier cheques do get written out
4) If you are getting the run around from the customer company, the person who made the sale should speak initially to the Decision Maker who bought from your company - three reasons for this

****This is the person who values the purchase
****This is the person with whom your company is building an ongoing business relationship
****In short, this person has a vested interest in keeping you sweet - I can remember numerous occasions when I’ve been on the buying side of the equation and stood over Financial Directors and made them write out a cheque after I’d received a telephone call from a totally (and understandably) fed up supplier!

5) Don’t back down - be prepared to state your case to the top man or woman
6) Be pleasant but firm - no-one wins if a slanging match is allowed to develop

One final point:

We’ve all heard of how the 80/ 20 rule often comes into play as a business becomes more established: 20% of your customers provide 80% of your business.

Take that a further logical step and say that the same 20% also contribute to around 80% of your turnover. If one or more customers within that 20% are allowed to get into the habit of late payment it won’t be long before you’re storing up cash flow problems for yourself.

Don’t let that happen to you: Use these tips to nip it in the bud!

Linda

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Article Tags: business relationship, customer company



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