If you want to maintain a good relationship with your customers, then you need to make sure that you get paid on time. This guide will show you how to navigate chasing customer payments effectively. You also need to make sure that you take steps to maintain a good rapport as well. If you want to find out how to collect money from your clients without turning them against you, then this is the guide for you.
Seven tips for chasing customer payments:
1. Ask for Payment Upfront
One of the first things you need to do is try and ask for payment upfront if you can. With goods, this may seem like a bit of an obvious approach. If you are selling a service, however, then you may be more inclined to accept payment after, which is the last thing you need.
If you want to do something about this, then you need to try and make sure that you set clear terms and that you also get a deposit, if you can’t accept the whole payment. This might not be possible if you do not have an established relationship with your client, but it will help you to have more security. It may even help you to flag future difficulties, which will help you later down the line.
2. Be Clear
Another thing you need to do is try and be clear. It is so important that you lay out all of your expectations ahead of time concerning payment, and that you also set clear and transparent ways of working as well. Communicate all of this with your client ahead of time, as they may not feel too good about having a surprise sprung on them, especially when it comes to chasing customer payments. If you want to make sure that your payments are made on time, then another thing you can do is try and set late fees and early discounts, as this can be a good motivator for your clients overall.
3. Send a Follow-Up
There are a huge number of reasons why your client may not pay their invoice on time. It’s not always because they have very bad intentions either. It may be that the person who handles the money is on leave or that the company is searching for someone else to make the payment for them. If you do not get a response via email from the company, then this is understandable, but at the same time, you do need to give them enough of a grace period so you can get the overall result you need.
4. Offer Adapted Invoicing
Another great thing to do would be for you to offer adapted invoicing. If you know that your query is not about how to collect the payment, then it may be worth sending your client an invoicing schedule. If you do this, then you can at least make sure that you are going to be paid on time and that they are aware of what is expected of them when they enter the contract with you.
It’s also worth implementing a payment process that is easy for them. If it’s difficult for them to pay, then this will result in issues down the line. Look into BACS as a payment method, and also make sure that you are taking steps to try and make sure that you support them in the best way possible. If you can do this, then you will soon find that it is easier than ever for you to get paid.
5. Reach out to Others
Sometimes, the reason why you might not be getting paid is that you are simply not in contact with the person who is handling the payment processing for you. If you have been hired for advertising, then you may have been in touch with the advertising department alone, and nobody else. This kind of issue can be avoided if you lay out a clear protocol for payment before you start work. In the future, when you start work, you do need to make sure that you hire the right person beforehand, as this is a good way for you to ensure that you get everything you need when you need it and avoid chasing customer payments later on.
6. Consider Losing the Client
If you are dealing with the issue of losing money from a client who is refusing to pay, then now may be the time for you to start whittling down your client pool a bit. It may be that you need to avoid wasting your time by working with people like this, and you also need to make sure that you terminate your relationship as a whole. If you can do this, then you will soon find that you can navigate the issue with much more confidence overall. Late payments are not something that you should be dealing with as a small business owner, so make sure that you keep this in mind.
7. Talk to the Client
If you can talk to the client, then this is great too. Talking to the client is often a good way for you to smooth out any kinks. It may be that they are waiting on a payment from their client before they can pay, and that the chain of payments has collapsed. If this is the case, then it is a completely different situation that you are working with, and you will need to navigate it accordingly. Putting pressure on the client may not solve the issue, and you may find that you end up losing someone who had every intention of paying you.
If the chain has collapsed for your payment then it is wise for you to be a little bit patient and for you to work with your client, as this is a good way for you to not only keep their respect, but ti also make sure that they are going to continue to make payments in the future, rather than needing to resort to chasing customer payments aggressively. If you can keep this in mind, then it will help a lot, so be sure to be mindful of that, as it is a good way for you to navigate this situation. Late payments are sometimes unavoidable, but how you address them will speak volumes about your company.
