Rule One of Business: Get Paid
To get paid, you would imagine is essentially crucial to your business because if you aren’t paid, what’s the point in business?
You will be astounded at the amount of business people who only get their clientele to pay them when and if they get around to it. I know of a businessman who continuously makes bad debts like accolades. Why, do you think? Most likely because he cannot bring himself to request the money and people can just intimidate him.
If you permit someone credit, only do so if they have proved their integrity to you by paying cash on delivery (COD) for a time. Moreover, you need to check whether they have the means to pay you - if they don’t then why do business with them. Don’t fool yourself into thinking “I need the work” or “I need the sales”. It’s damaging when you do the job or providing the goods for zero if you are not getting paid.
If you are the kind of person who can’t ask for the payment even after the job has been completed, try these cheats:
Tell your customer that when the work is finished up, you require cash or cheque. They will be likely to have it ready at the point of sale and you do not need to request your money.
When sending out the quote, make sure your payment terms are visible.
Form an invoice that has your terms of payment simply printed and send the customer the invoice when the service is finished up. They will see the invoice and simply assume they should pay you now without you needing to say a word. Manufacture an “evil boss” who will skin you alive if you do not bring back the pay for the work.
Arrange with your banking institution to have you running with Merchant facilities so you can take credit cards for example Mastercard and Visa. The majority of people utilize credit cards and it would cease the problem of the client not operating a cheque account or not having the cash in their pocket.
Likewise, don’t be asked not to hold the goods till after they have been paid for. Know, until the goods are paid for, the goods remain to be yours.
If you decide you’re going to let a client credit, be sure you have the following contact details from them at a time PREVIOUSLY you give them credit.
- Name
- Address
- Phone number
- Bank name and address
- Account no.
- 3 trade references with their names, addresses and phone numbers
After you take all this detail, telephone the bank and make certain that they use an account with them. Then, phone each of the trade reference and inquire if they pay their invoices correctly or if they have any difficulties with them.
Most people will be willing to tell you if the person is troublesome. If everything is OK, allow them a moderate level of debt, say no more than $500 (depending on your business). Monitor the operation of the account for a few months before allowing this amount to be exceeded.
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