Top 5 tips to encourage your customers to pay on time
Our experience in the world of debt collection has taught us a lot about encouraging people to pay on time. Over time, we have amassed a range of tips which have helped many of our clients improve payment rates.
1. Carry out a credit check
If you are providing some form of credit, it is important to carry out a credit check. A credit check will give you an insight into customers’ previous credit habits, so any potential problems can be avoided before an unpaid bill impacts your business.
2. Ask for payment up front
In many cases, it is possible to eliminate any risks by asking for payment up front. Whether you provide a product or service, if the customer values your business they will be happy to pay up front. If this will not work for your scenario, you can also ask for a part payment in advance as a sign of good faith.
3. Automate your invoicing
There are numerous accounting software packages available which will automate your invoicing process. As soon as you have completed a service or supplied a product, the software will send an invoice. Waiting for an accounts department to manually process the invoice will mean that your outstanding invoice is not fresh in your customer’s mind and may be ignored.
4. Offer a discount for paying early
Every business should work hard to retain good customers, so why not reward them for paying early? Just a small percentage can be enough to encourage customers and, over time, the amount of paid invoices will far outweigh the number left unpaid.
5. Provide a variety of payment types
Your customers will all have preferred methods of payment, whether it’s cheque, cash, credit card or a simple online system. Providing a range of possible payment options will remove any excuses customers could provide. Many businesses worry about the cost of these services, but it will be much less in the long run than chasing unpaid debts.
If you are struggling to chase outstanding debts, our team of experienced doorstep collection agents are always available to discuss solutions. To find out more about our services, contact our team today.