There's a question that pops up in my email inbox at least
once a week, from clients asking, "Why are some businesses
far more successful at getting paid on time than others?"
Having worked with clients and Fortune 500 corporations
over the years, I've heard this question asked over many
cups of coffee. In my experience, the reason why a small
business can easily leave their competition in the dust is
because they have identified and understood better then
their competitors exactly what their clients will do
anything and pay anything to solve, and they provide it.
So, you not getting paid on time? You're not alone. With
companies and individuals all now holding on to their money
for as long as possible, asking a client for payment is a
challenge you're likely to come up against as a
self-employed professional.
I used to sweat it out, waiting for checks to arrive on
time. You know that feeling, when you sort through the mail
looking for the envelope of your client? Then, I came to a
point with my business that I would no longer accept checks
for the programs we teach. So many of my clients enjoy
re-enlisting in our programs, that it became a no-brainer
to accept credit cards that we could bill on a re-occuring
3 month cycle. My clients wanted to pay with credit cards,
and I provided them the means.
Now, sometimes I will hear my clients tell me that the
charitable pledges weren't paid by their members, or the
condo dues are late again. When it comes to not paying on
time, frequently there has been just a clerical mistake, or
the loyal client will at least pretend that there has been
one. Peoples lives are so busy, that they forget to pay
you. This often means you will have to go easy on them and
let the client look into-or pretend to look into-the matter
and schedule a follow-up call. Now, the attitude to take in
the first call is that, since you are, in effect, business
partners, and the client's failure to pay you promptly is
probably a mistake that can be corrected. If you still
value this client, and you need to make a second call, you
should then push for closure without being nervous or
confrontational.
Remember you are merely following normal business practices
to collect your payment from a loyal client. So, follow
these four steps to get your hard-earned money paid on time.
1. To appear professional and confident on the phone, have
the invoices in question in front of you. Print their
statment and highlight the amount due, their payment
history and thank your client for any advanced payments.
Make notes on the past due invoice of any positive
responses they received from working with you or your
products. Note any special payment agreements as well.
2. Call your client during normal business hours so that
the client doesn't have an excuse that bookkeeping staff
aren't available. And of course, call the day that you
expected payment. Remember, you have no leverage with your
client's accounting department, partner or spouse. Your
agreement is with your client, and it's THEIR job to get
you paid NOW!
3. Have this conversation on the phone, and stand up when
you speak to your client so that your voice sounds clearer.
Be ready to ask for a date when you can pick up the check.
Or, consider getting a merchant account so that your past
due client can give you a credit card number right on the
phone. If you use an accounting software like Quickbooks,
you can even set up a re-occuring payment plan using their
credit card. That way you get paid, and your client can
continue enjoying their life.
4. You also need to resist the suggestion that your client
just doesn't have the power to pay you at this moment. Yes,
you can sympathize with your client, but don't get drawn
into their personal situation.
Overall, your goal here is to make it as easy as possible
for your client to pay you on time. If you keep attracting
deadbeat clients, perhaps you need to re-define who your
ideal clients are.
----------------------------------------------------
Kim Schott, your Global Client Communication Expert, is the
author of the Keys to Client Communication System, the
step-by-step, paint by numbers client attraction program to
attract more clients in less time. To receive your weekly
how-to articles on consistantly attracting more local and
global clients in less time, visit
http://www.SchottCulturalConsulting.com
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