The quicker a small business gets its customers to make the payments, the sooner it will be able to take care of expenses like salaries, interests due on small business loans, etc.
Here are a few ways to ensure that your customers don’t delay in making payments!
7 Ways To Make Your Customers Make Payments On Time!
Let’s look at some subtle ways of ensuring that customers make the payments on time.
1. Use Positive Reinforcement
Offer rewards, like a discount, to incentivize your clients to pay on time – or even early. Make sure the early or on-time discount is something you can feel comfortable with, but don’t discount your products too far down.
2. Don’t Be Afraid Of Negative Reinforcement
While some clients respond to positive reinforcement, others react more to penalties.
This negative reinforcement tactic can be in the form of a late fee added after a late payment.
The message is you are not willing to accept untimely payments.
3. Offer Multiple Methods Of Payment
Going beyond cash and cheques, you can accept credit card payments, online bill payment systems, direct deposits, e-wallets, etc. thanks to flexible banking and payment technology platforms.
4. Nurture Healthy Client Relationships
Getting to know your client and establishing a good relationship goes a long way in terms of getting paid on time. Mutual understanding helps build respect and trust, while also making it easier for you to pick up the phone and ask about the status of your payments.
5. Switch To Recurring Billing
Having different billing dates can confuse the client and upset the delicate payment balance. Choose to partner with a recurring invoicing system. With the client’s credit card or checking account information in the system, there is no doubt that payment will be made each month.
6. Negotiate Terms Beforehand
Negotiate payment terms right from the beginning – terms that are satisfactory to you and the customers. Often, an intelligently drafted agreement is sufficient to ensure that the customers make the payment of time.
7. Hold Delivery Of Products Hostage
Some clients might be testing the waters to see what they can get away with, and holding the delivery of products hostage until the customer makes the payment, conveys that you won’t be taken advantage of.
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