No one likes to be chasing down customers for payments, but sometimes it’s unavoidable. If you find yourself in this situation, there are a few things you can do to improve the situation.
In this article, we’ll explore what some of these steps are and give you a game plan for doing it without seeming like the “bad guy.” Here are five you’ll want to keep in mind.
1. Communicate with your customers regularly to ensure that they are aware of their upcoming payments.
It’s important to communicate with your customers regularly to ensure that they are aware of their upcoming payments for a few reasons. For one, it helps them to budget and to plan ahead so that they’re not caught off guard by a larger than expected bill.
Secondly, it shows that you’re organized and on top of things. This instills confidence in your customers, but it also lets them know that keeping up payments should be a priority. It also helps to avoid misunderstandings or miscommunication about payment due dates, amounts, and other related factors.
Tips for doing this without seeming pushy include setting up automatic reminders (via email, text message, etc.), being clear and concise in your communication, and giving your customers plenty of time to make their payments. Thanking them in advance is always appreciated as well.
2. Offer a variety of payment options to make it easy for customers to pay on time.
When it comes to payment methods, offering customers a variety of options is always the best approach. Some customers may prefer to pay with cash, while others may prefer to use a credit or debit card. Still, others may prefer to use a mobile payment app like PayPal, CashApp, or Venmo.
By offering a variety of payment methods, you can ensure that all of your customers will be able to pay for their purchases in a way that is convenient for them. Additionally, you can offer discounts or other incentives for customers who use certain payment methods.
For example, you could offer a 5% discount for customers who pay with cash or a 2% discount for customers who use a specific credit card. Offering such incentives encourages your customers to use the payment method that is most convenient for your business.
Last but not least, shifting to more electronic payment forms can save you money on billing and accounts receivable. (To the tune of around 50-75 percent.)
3. Send reminders prior to the due date to remind customers of the impending payment.
It’s important to send reminders to customers prior to the due date of an impending payment for a few reasons. First, it allows them the opportunity to budget for the payment and ensure that they have the funds available when the payment is due.
Second, it helps to avoid any late fees or penalties that may be associated with making a late payment. Of course, make sure these penalties or fees are communicated ahead of time to avoid any surprises.
When sending reminders to customers, do so in a way that is respectful and professional. Set up automatic reminders that are sent out a few days before the payment is due. Send a personal email or text message reminder a day or two before the due date.
Whichever method you choose, include the relevant information, such as the amount owed and the due date, so that your customers can be prepared to make their payment on time.
4. Establish clear late payment policies to ensure that customers are aware of the consequences of not paying on time.
One of the most important things to consider when developing a late payment policy is how you will communicate the policy to customers. It is important to be clear and concise so that there is no confusion about what is expected.
You should also consider how you will enforce the policy, as well as what consequences are appropriate for late payments. Some businesses choose to charge a late fee, while others may withhold services until the bill is paid.
Ultimately, it is up to you to decide what will work best for your business. However, it is important to be consistent with your policy and fair in your enforcement in order to maintain good customer relations.
5. Work with customers who are having difficulty making payments to come up with a reasonable payment plan.
If you’re having difficulty collecting payments from customers, you’re not alone. In fact, it’s a common problem for businesses of all sizes. Fortunately, there are a few things you can do to improve the situation.
First, try to be understanding and flexible. If a customer is truly struggling to pay, they may appreciate some leniency in terms of when payments are due. Second, consider offering a discount for early payment.
This can incentivize customers to pay on time, while also providing some much-needed cash flow relief. Make sure you’re clear about your payment terms from the outset. If customers know what to expect, they’re more likely to stick to the schedule. By taking these steps, you can help ensure that late payments don’t become a chronic issue.
Following the tips presented here helps to ensure that your customers are able to make their payments on time and avoid late payment fees. But not every customer will hold their end of the bargain.When you run into chronic issues with past due accounts, it’s time to contact a professional. Southwest Recovery Services has helped businesses get the payments they deserve (and faster) for many years. Contact us now for solutions that get you paid quickly.