You’ve done your part. The job is complete, your customer is
satisfied -- but a month has gone by, and your invoice is still outstanding.
You’d like to work with the customer in the future. So how do you get your
money without losing the customer?
Here are two strategies that may help.
1. Communicate promptly. On the day after the due date, send
an e-mail with your original invoice attached, or fax a copy. Then call to make
sure the duplicate was received. While you’re talking, ask whether the customer
has all necessary documentation, and find out why payment is delayed. If the customer
is happy with your performance, mention that you won’t be able to complete new
contracts until past invoices are cleared up. Request payment on a specific
date.
What if that date arrives but the money doesn’t? Drop by
your customer’s business. Take a copy of the invoice and notes of previous
conversations. Offer to wait while a check is processed.
2. Be willing to negotiate. When customers fall on hard
times, you may still be able to find a solution that will work for both of you.
Some options:
* Ask for a portion of the outstanding balance.
* Request that a specific invoice be paid immediately, with
the remainder due at staggered intervals.
* Establish a short-term payment schedule for a series of
smaller checks.
* Offer to convert the receivable into a formal note, with
an amortization schedule and interest rate.
Setting credit terms, limiting the amount of credit you’ll
extend, checking ratings, and requiring down payments can prevent collection
difficulties. If you’d like help establishing procedures for receivables
management in your business, give us a call.
No comments:
Post a Comment