When you deliver goods and services to clients, you expect to be paid for them. After all, that is how your business functions. Generally, this is what happens and you go on to maintain long-term working relationships with happy customers.
Nonetheless, delayed payments or non-payments do happen occasionally. How can you combat this and encourage your clients to pay on time?
Be clear about payment terms
While informal agreements can work, you have no protection with them. That’s why every deal should be based on a legally binding contract. In these contracts, you can set out the goods and services you intend to provide. You can also include precise payment terms.
Your payment terms should state the exact price. Ideally, this should be a fixed price. You can also be clear about when payment is due. For instance, you could include a term like “invoice to be settled in full within 30 days.” Customers may avoid paying when they feel they have been overcharged. They may also delay payment if there are constant add-ons and changes to the original quote.
Offer flexible payment options
Lump sums of money can intimidate clients. That’s why it may be beneficial to offer flexible payment options. For instance, you may allow the invoice to be settled for a set price every month. Or, you could take an initial deposit, another payment halfway through the project and a final payment when the job has been completed. It can also be beneficial to accept as many payment methods as possible, such as bank transfer, check, credit card and cash.
Clear contracts and invoices are the keys to obtaining prompt payments from clients. If you are trying to collect an outstanding bill, it may be time to explore your legal options. The post Getting your clients to pay on time first appeared on Warren Gammill & Associates, P.L..
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