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Show me the Money
20/08/2009
Duane Jackson from Kashflow Accountancy Software has written a Blog post which includes handy tips on managing your Cash Flow....
Deal firmly, fairly and quickly with late payers
'Don’t be embarrassed to ask for payment. Be assertive about collecting what’s owed to you; after all, it is your money.
The first thing you should do when an invoice becomes overdue is to contact the customer. It’s not a nice call to have to make, but don’t delay it.
Sometimes it’s easier to have someone else in your company (your other half perhaps if you’re a one-man band) make the call. You then don’t have your working relationship getting in the way.
The customer may say they simply can’t pay at the moment as they don’t have the cash.
You now need to make a judgment call. If you give them enough time to try to pay you then you may well get paid and keep them as a loyal customer due to being so understanding.
On the other hand, they may well go out of business and you’ll not see a penny of what you’re owed.
There’s no right or wrong approach. It depends on a number of factors including how important the customer is to your business and their previous payment record.
A compromise can be to agree to take a part payment immediately and give them time to settle the balance. If you do this then make sure you agree a date for the balance to be settled and that you chase them for payment on the agreed date.'
Visit the Kashflow Blog for more tips from the post...