Every salesperson has experienced a customer who did not pay their invoice on time and needed to be pushed. It can be quite frustrating after you sign the contract, thinking that the deal is finally closed, then the customer does not pay. Then you need to have an unpleasant conversation with them. The MoreBusiness server has six tips which will help you to prevent these problem and save both you and your customer a lot of unnecessary trouble.
- Have a clear payment policy and explain it to the customer. The best way to avoid issues with payments is to have defined payment schedule which you make clear to your client before he or she signs a contract.
- Create and explain an installment plan. In the case where the money is not paid at one, but it is split into installments, create a clear installment plan and explain it to the customer.
- Deposit. An upfront deposit is the most common form of ensuring that the client will honor his or her obligations after they have signed a contract. The amount depends on your type of product. The deposit is usually one third to one half of the overall price.
- Make credit card payments possible. The easier you make it for customers to pay, the less likely you are to encounter payment problems. Some companies do not accept credit cards due to the high charges. However, if it is possible, offer the option of credit card payments.
- Early payment discount. Some company payment policies include a discount if the client pays the invoice after signing the contract before the due date. Usually, customers are entitled to a 1 to 3 per cent discount if they pay within 10 days after signing the contract.
- Create a tracking and deliquent credit system. Create a unified system of reminders which includes not only the times before and after the due date, but clearly defined steps to take if the client is not willing to pay.
What do you think is the best solution?
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