In an ideal world, you’ll provide your customers with a great service or product and they will gladly pay you in full and on time. Thankfully, this is what happens with most transactions. Unfortunately, not every transaction goes as smoothly as this, and payments can be delayed or even withheld altogether.
Are there ways that you can secure payments earlier before you need to go down the avenue of debt collection? Outlined below are a few tips that might help with receiving prompt payments.
Be flexible in your payment methods
Many customers still use cash, but society is increasingly moving in the opposite direction. There are numerous online methods of payment. Does your company offer at least some of these?
Online payments can not only be beneficial for your customers, but also for you in terms of record keeping. The software will allow you to keep automatic records of payments as well as overdue and upcoming payment dates. Generally, transactions are stored in an online cloud, which means their records cannot be lost unlike paper receipts and cash.
Get your contracts right
Even small transactions are founded upon contract law, but when making deals for larger sums of money, having sound contracts is crucial.
Your contract should include the parties to the transaction, the payment terms, due dates, late fees, discounts, guarantees and other key terms. By having an effective contract, your rights are protected should anything go wrong.
Having money owed to you can not only be stressful but it can impact your bottom line. When trying to collect unpaid balances, be sure to receive legal guidance so that you can follow the relevant rules and regulations.
