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HOW TO GET CLIENTS TO PAY OVERDUE BILLS

One thing that every business owner dreads, is having to deal with overdue bills. You need income from your business, and there is usually trust that your clients will pay you in a timely manner. Unfortunately, this doesn’t happen as often as it should. So, how can you ensure that some of these overdue bills get paid? Well, here is what you need to know!

Send Payment Reminders

Sending payment reminders can be a great way to stay in business. When done correctly, reminders can help you stay on top of your payments and avoid a number of pitfalls that can cause your cash flow to suffer. Organising your payments can lead to more positive client relationships and a better overall cash flow.

Decide on a set time and frequency for each reminder. If you are using a system like Jobber invoicing software, you can schedule your reminders automatically. You can also configure payment reminders based on your expected payment date. Just make sure that you give this reminder gently.

Set Up a Payment Plan

The ability to set up a payment plan is a great way to avoid the hassle of dealing with late payers. This is especially true if you are in the B2B arena and your customer base is primarily made up of businesses in the same industry. A well-thought-out plan will also make for a more enjoyable relationship with your customers. It is important to keep in mind that your customer base may not be as financially savvy as you are. While slamming some sense into your customers is important, there is no reason to be inflexible.

Offer Other Payment Options

In addition to creating a payment plan, a business should provide its customers with a few payment options. One of the better ways to do this is to offer various payment options, such as checks, cash, and credit cards. Some vendors may even offer a payment plan of their own. You can even consider hiring a third-party factoring company if you find that your clients are unwilling to pay you for your services. Sometimes, it’s not so much about the payment for the customer, but the issue is how to pay.

Debt Collectors

Sometimes, it’s going to be too challenging for you, and this is when you need to call in the professionals such as those from Advantis. You need to focus on what you do best and not stress over challenging customers. Reaching out to debt collectors can be one of the very best things that you can do for yourself and your business.

Consider legal action

One avoidable mistake you can make is not to give up. Unfortunately, a lot of businesses will give up if they don’t get paid. You shouldn’t do this at all. You need to keep trying, and sometimes, this means having to take legal action. If there were a contract between both parties, this would certainly be in your favor, especially if there is a paper trail too. Make sure not to neglect this!

How to Get Clients to Pay Overdue Bills