Assess your risk: Small businesses should know a little bit about their customers before they purchase. Make sure that you collect information on prospective customers prior to entering a business engagement. If you are dealing with large transactions it may even be worthwhile to do a credit check.
Clear payment terms: It is useless to have ambiguous payment terms, as this will just cause problems. If you expect payment within 30 days, state the exact due date on the invoice. Remember to include your bank details if you want to be paid via bank transfer, or else this will lead to delays.
Invoice quickly: It is imperative that you invoice a customer as fast as possible. Any delay on your behalf is only going to slow down the process. In general, the quicker you invoice then the quicker you will receive payment. Make sure that you invoice correctly or you will not get paid. It often helps to use invoicing software like the one provided by WinWeb.
Customer care: It is a good idea to provide a courtesy call to customers about a week after invoicing them. Ask them if they received the invoice and use the opportunity to check if they are satisfied with their purchase. This will help you to appear customer friendly and also serves as a gentle reminder for the customer to pay you.
Be assertive: Many people feel awkward about telephoning customers and demanding payment. Remember that it is your money that you are owed and you are entitled to receive it. Don’t just accept excuses at face value and make sure that your customers are not just trying to fob you off. You must avoid being seen as a soft touch by your customers.
WinWeb Applications and Services can help you to improve your cash-flow, whether through the use of our Business Planning Application, Invoicing Software or Bookkeeping Service. Visit our website for more details.