The worst thing that can happen to any small business is to
do the work and not receive the payment. If this has ever
happened to you than you know how frustrating it is, and
you probably want to know how to make sure it never happens
again. This article will tell you how to get paid on time.
The first thing you can do is to do thorough credit check
before you offer credit. Before you give anyone credit you
should make them complete a credit application, perform
credit checks, and get at least two trade references. Most
people and companies understand the need for this
information and will gladly give it to you. It is important
for you to remember that credit is a privilege and not a
right, so be firm on this.
You need to send an invoice out the day that you complete
the service or send the goods. If possible you should try
and send an invoice with the goods and also a copy to the
accounts to make sure they receive the invoice. Your
shipping Bill Of Lading should have all the shipping
information, product codes and should include a copy of the
invoice.
Make sure that you get the name of the person who the
account is payable through. If you have the company, fill
out a credit application form than you should have the name
of that person already. It is possible that you will speak
to a number of people and get varying responses, but if you
speak to the same person each time and keep notes of your
conversations they will be accountable for the payment.
On the day that the payment is due you should call and ask
when it will be made. It is early in the collection process
so don't be aggressive, but by calling early you will
encourage a slow payer to pay more promptly. The
conversation can start with quality assurance questions
such as, did they get the product on time, was the work
done to your satisfaction or let them know the special
steps you may have taken to assure they were satisfied. If
all is well you can casually ask when you can expect
payment. By making the conversation about them and their
needs it will be easier to get what you need.
The final way to encourage a person to make a payment on
time, or early, is to offer them a discount. By offering a
discount of 5% if the bill is paid early you will encourage
the company to pay early. It is important that you only
offer this if you can afford to. This kind of offer can be
sent along with the shipping papers or made a part of the
original invoice. Let them know up front that they can save
money by paying early.
The worst thing that can happen to a small business owner
is to do hard work and not receive the money. Offering
credit can be a good way for a business to get orders for
their goods or services, but only when done the right way.
With the information in this article you should be able to
safely offer credit to customers, knowing that you will be
paid on time, if not early.
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Stephen Meyer is an experienced home based business owner
who offers many legitimate home based business opportunties
that can help any one succeed. To see his many legitimate
home based business opportuntites and reviews please visit
his Small Business ideas website at
http://www.itcanhappen4u2.com .
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