Overdue payments!Here’s how you can get paid on time with these 7 helpful tips

As a contractor or a small business owner, you must have faced a client who seems to be too disinclined to pay. Not getting paid on time can wreck your cash flow or even prompt long-term financial stress.

Before you file a default judgment, consider the following valuable tips to make sure you are paid for your services on time.

Review your client’s credit report

Working on faith does not serve too well in the real world. If you are concerned about your payment security, run a credit check on your clients. This will provide you with all the information you require to reach a conclusion on whether or not to extend credit.

Ask for payment upfront

If you do not want the stressful moments of waiting for your clients to pay, desist offering credit altogether and encourage them to pay upfront. Even if the client makes a partial payment, it ensures that you will not get played by them and that you will have the money coming in to pay some or all of the overhead.

Give your clients payment options

You have to be flexible with your payment options and consider how your clients prefer to pay. The more comfortable your clients are in a payment mode, the more likely they are going to pay you timely.

Offer early payment discounts

You can reward your clients with reductions and refunds whenever they make their payments on time. This can urge them to continue paying you on time in an attempt to save a significant amount of money through discounts.

Invoice due dates

You should encourage the client to come to an arrangement with you that explicitly defines the terms, deadlines, fees and other essentials. This allows the client to be more informed of the payment schedule so they can make the payment before due date.

Make contact with your client

In most cases, your client will just forget about paying you back. A gentle reminder to make them realize they are behind on their payments can induce them to pay as quickly as possible.

Hire a debt collector

If your client still has not paid, this is when you should hire a debt collection attorney. Sometimes, all it takes is the presence of an authority to recover the amount unpaid. With their professional consistency and assertiveness, and access to advanced tools and information, they can effectively persuade your clients to pay you back.

It is necessary to do as much as possible to ensure that you get compensated for the amount that is legally yours as soon as possible, to efficiently maintain the cash flow.

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Created on Mar 21st 2018 08:30. Viewed 359 times.

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