It’s a common, and frustrating, problem for small business owners-the customer who never pays on time. Tracking down lagging customers not only wastes time you could be devoting to working on cars and bringing in more money, if your customers are paying you late, you may have to pay your bills late, too. How can you make sure your customers will pay you on time?
In a recent article for the Sydney Morning Herald, writer David Wilson shared 10 tips for getting customers to pay on time every time.
First, charge in advance if you can.
Second, contact customers as soon as possible if they fall behind on payments.
Third, offer as many different payment options as possible.
Fourth, considering moving to cloud accounting.
Fifth, stick to your billing and financing terms.
Sixth, send invoices consistently.
Seventh, recognize that you can’t afford to keep clients who aren’t paying you.
Eighth, set a time period for customers to dispute their invoices.
Ninth, be sympathetic with customers who are having trouble paying.
Tenth, enlist a collection agency.
To read the complete Sydney Morning Herald article, click here.