How To Deal With Late Payers

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4645730858_b3114f96a4_bDon’t Lose Your Cool


If you have a business, you are likely to  run into people that will be late to make a payment on the services you have provided. There is no avoiding it, people have many different reasons to why they are late on payment.

Payers have a variety of reasons for not making payments on time. Whether because of financial issues, priority level, or plain disorganization. The procedures you put in place to make paying invoices easier on your clients can truly make the an impact in preserving your own business’s overhead.

No matter what helpful tools you put in place, there will be instances that will require you to deal with late payers. That’s why you need a clear and direct payment policy that includes penalties for past due payments. After all, you need some compensation for the impact of late payments on your bottom line. And occasionally, it can create a sense of urgency.

One sure way to get a better understanding of who are you dealing with as a client is to run a credit check, A credit check will show your prospective customer’s business credit rating and payment history. If you see long outstanding payments or a history of late payments, you might reconsider whether that client is worth taking on.

No matter how difficult the client acts, remember that it is extremely beneficial to your business that you try to build a relationship. Even a thank you call from time to time is a great way to humanize your business and put some personality behind that official looking request for payment. By reminding your clients that their check is going to a real person, you make them more likely to show personal respect by paying on time.

When your other options have failed, you have to know when to cut the cord with a chronically late paying client. There is no point in spending more of your precious company time on a client who is not paying up, by this time you should already have sent a notice that services will be terminated in appropriate time frame.

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