Oct 11, 2013 06:18 PM EDT
It doesn't matter what type of business you operate, making sure you get paid on time and as seamlessly as possible (for both you and your client) is critical to your success and survival.
But knowing how to get paid isn't as easy as it sounds. The payment options that work for one business, may not work for another. Likewise, getting paid on time requires you put the right pre-emptive measures in place for collecting what yo-re owed and managing past-due payments.
To help you make the right decisions for your business, here are some pointers about setting up customer payment options, tips for getting paid on time, and what to do if you do't!
What Payment Options are Right for Your Business?
It does't matter whether you operate a brick and mortar store, an e-commerce site, or a home-based business, cash has to flow from A to B. But what payment options are right for your business? Here are some quick insights and FAQs that may help you decide.
Another increasingly popular payment option are layaway plans. Layaway plans typically require customers to pay a deposit, generally a percentage of the total price for an item, and make additional payments until the total cost is covered. Retailers agree to hold the item for the customer until the payment plan is complete, at which point they can take home their purchase.
Getting Customers to Pay On Time
You're provided a service, invoiced your client, but payment is past due and ther's no indication of when you're going to get paid! It's frustrating but inevitable. However there are some measures you can take to pre-empt and deal with this troublesome issue.Read Getting your Customers to Pay-Up: Tips for Protecting Yourself from Non-Paying Clients, for tips.
When Customers Don't Pay
Customers don't pay for a number of reasons - cash flow issues, poor accounting, or sometimes they may just consider the work incomplete. Whatever the reason, and no matter what pre-emptive measures you have put in place, this follow-on article to the one above, outlines some soft and legal options for collecting or pursuing client debt: Getting your Customers to Pay-Up: Tips for Collecting from Non-Paying Clients.
Additional Resources
For more information on debt collection options and the legal and regulatory ramifications read the government's 'Plain English Guide to Collecting Debts'.
Source: SBA.gov
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