Getting clients to pay on time...

Hi

What methods do you use to get clients to pay on time?

I have heard of some businesses that offer a small incentive for paying on time, for instance a 5% discount, or perhaps a discount on future orders for paying on time.

However it doesn't seem fair that you have to offer incentives just to get people to pay on time!

How do you get people to pay on time; any tips on what to do?

Thanks!

Tim

Re : Getting clients to pay on time

Getting clients to pay on time, or indeed anyone, is usually one of the hardest things to do. Largely there are those who are decent and pay on time but always an unhealthy percentage who will never pay until you at least start chasing. This normally gets most to pay but sadly not all.

The key is to chase as soon as the money owed is late - the day after it was due to arrive call with an enquiry as to where it is. Often you will get excuses about payment timescales, delays, problems with the accounting software, but make it clear that whilst you sympathise those are not your problems, you had an agreement and they have paid late.

Usually if you make it more hassle than its worth then they will pay you. Therefore a daily phonecall until the money arrives, as difficult as you may find that to make, is often the best way to get your money without having to wait ridiculous lengths of time.

Re : Getting clients to pay on time

Jim

Thanks for the advice, much appreciated.

What would you recommend for those clients who don't pay even when you call them most days - for instance either keep on giving you empty promises or even stop taking your calls?

Luckily this has not happened to me yet (fingers crossed it won't!) but just interested in what the procedure would be in this sort of situation...

Thanks

Tim

Re : Getting clients to pay on time

Nevermind paying on time... how about getting the clients in the first place? :S

Janine

Re : Getting clients to pay on time

I think I'm pretty lucky but haven't really had problems with clients not paying. I think when most of your business is done face to face and you get to know people at least to some degree it is more likely that they pay up!

Lianne

Re : Getting clients to pay on time

Hi Tim

I don't know whether this would suit your business model, but as a clinic I take a card deposit when the booking is taken and the balance is payable on the day.

A large newspaper company I advertise with adds on a late payment fee to every invoice, which you can ignore if you pay on time. I think this is better than offering a discount.

I can also recommend the services of a company called Inksmoor who offer a cost effective credit control solution. They are not debt collectors! It is run by a very nice guy I know called Andrew Radley. His number is 07790 323 207 and it might be worth giving him a call to see what he offers.

Re : Getting clients to pay on time

If you have a problem regarding this subject, why no consider 'invoice factoring'
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Re : Getting clients to pay on time

I threaten them with page 90 of Google...lol
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Re : Getting clients to pay on time

I haven't confront with this problem so far.I think the method of "a 5% discount, or perhaps a discount on future orders for paying on time"may work.