Business owners can get pretty upset when you live up to your half of the bargain by giving great service to a customer and the customer doesn’t live up to their half with the payment.
Customers may be really having a difficult time making ends meet, but you are too when people don’t pay up after you have completed your business services. It may be months until you see payment; during that time you could have put them on a payment plan to give a little bit each week.
Other people are just stubborn and have the money. You can send them all the invoices and call them all the time. Finally after all that effort they will pay you.
How can this problem be controlled better? You can start by having rules of credit, which are known by all staff and clients. These rules need to be adhered to every day because once you let people start sliding, they will walk all over you.
The rules of credit should be…
- Having a credit check for new clients
-Making a credit limit for clients
-Defining a term of payment
-Having a procedure for the notices that are sent
-Having a procedure for phone calls
-Allowing cash sales if the limit is reached
-An airtight debt collection operation
**Just remember that it doesn’t matter what your rules are, all customers should be aware of them.
