How To Urge Your Client To Pay You On Time

Good customer service may be one of the priorities you have in your business. But of course, it does not always come down to whether or not your clients are satisfied. You also want them to pay their dues to your company as punctually as they are expected to be. After all, you are running a business that aims to provide quality products and services in exchange of a specific sum to be paid by your customers.

Unfortunately, not all customers are diligent in paying their dues on time. They sometimes forget their due dates and pay you way later than you have asked them to. On other times they have more important matters to fund, which makes paying you become second choice. But you do not need to put up with this for so long. You can do some of the following tips to ensure that your customers would pay you on time.

· Offer discounts to customers who pay on time. An example is when you offer a second product with 5% off the price to the customers who would punctually pay for their first purchase. Through this strategy, you can encourage your customers to settle their dues on time in exchange of a cheaper purchase price should they buy from you again.

· Charge penalties for late payments. Most companies opt to charge penalties to customers who do not pay their dues on time. You may look at it as a brutal way of collecting payments but the strategy works to discourage buyers from being delayed in their payments to avoid having to pay more than what they should. Just make sure that the rate of the penalty charges as well as the grounds for charging are reasonable.

· Regularly remind your clients of their due balances. There are many cases in which clients get delayed with their payments because they have forgotten that they have something to settle. This can be solved by sending them invoices and reminder notices before their due dates to help them remember. Follow-up on these invoices soon after to ensure that they have been received.

· Consistently follow-up on the payments. You should not hesitate in reminding your clients about their balances and due dates. In fact, most customers feel it is your job to remind them of what they are supposed to pay. Show your clients that you consider the business transaction important and that you need them to cooperate as much as possible.

· Whenever possible, get advance payments. You can also create payment schemes wherein your clients have to pay a certain amount first before they can get the product. After which, offer a scheme that would allow them to pay for the remaining balance within a certain number of months. More people would be encouraged to pay on time with a scheme that does not require them to produce a large amount of money only once.

Source by Ben Vestic

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