Being paid, just as you would figure is fundamentally the point to your business because if you do not get paid, what are you doing in business?
You may be laughing at the amount of business people who have their customer base to make payment when and if they get on with it. I am acquainted with a business owner who habitually makes bad debts like trophies. Why, do you think? Just because he doesn’t bring himself to ask for the cash and allows people to use him.
If you give someone credit, only do so when they have proved their worth to you by paying cash on delivery (COD) for some period. Moreover, you should see whether they have the money to pay you - otherwise do not do business with them. Don’t trick yourself into saying “I need the work” or “I need the sales”. It’s pointless in doing the work or providing the goods for free if you aren’t paid.
If you are the kind of person who can’t ask for the fee even when the work has been finished, try these cheats:
Tell your customer that when all the work is finished up, you will need cash or cheque. They will more than likely have it on them at the transacation and you do not have to request your pay.
When you give out the quote, be sure your payment terms are plain.
Complete an invoice including the terms of payment plainly stated and give the customer the invoice when the job is done. They will take the invoice and generally realise they have to pay the money now without you being required to say a word. Fabricate a “cruel boss” who may torture you alive if you don’t return with the money for the service.
Ask your banking to provide you with Merchant facilities so you can take credit cards for example Mastercard and Visa. Many people possess credit cards and it can cease the problem of the customer not owning a cheque account or not having the right amount of cash at the time.
Moreover, don’t be persuaded against to hand over the goods until you’ve been paid. Don’t forget, until the goods are paid for, the goods are still yours.
If you decide you’re going to allow somebody credit, be sure you get the following contact details from them a week PREVIOUSLY you allow them credit.
- Name
- Address
- Phone number
- Bank name and address
- Account no.
- 3 trade references with their names, addresses and phone numbers
After you know all this detail, ring the banking institution and make certain that they have an account at there. Then, phone all of the trade reference and ask if they pay their fees correctly or if they have any problems 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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