There’s a maxim in sales that the sale is lost at the beginning. Similarly, when engaging in business the explanation why you have to follow payments from purchasers is that the payment terms were not obviously defined at the start.
After you have completed a job or work for a customer the very last thing you wish to do is chase the client for 90 days for payment.
We spoke to our accountant last week and he endorsed the following methods to get paid faster.
Visa Card
When a customer asks what your credit terms are, you can politely tell them that if they wish 30 days credit they should make the payment using their Mastercard. Provided the invoice value’s not too large, this payment system can satisfy both seller and consumer.
PayPal
Many entrepreneurs have credit stored up on their PayPal account and if the sales value is comparatively small you can place a buy now button on your website from PayPal enabling the customer to complete the exchange.
Google Checkout
Techniques like Google Checkout and PayPal may be employed to collect payments from purchasers who’ve debit or credit cards. These payment strategies really help to bypass the buyer asking you to send them an invoice; which is a payment stalling technique.
Bank Transfer
Most companies have online banking and such transfer only take minutes to process. Again there is no reason that explains why payment should be slowed down if you provide your checking account details on your invoice.
Half upfront and half upon completion
To guarantee you’re paid quicker, you can ask the customer to split the payments in half. This may reduce their cash-flow issues enabling them to generate money while you are doing the work. Corporations concerned in corporate web design where a job can take a number of months find this an attractive payment system. Just ensure you don’t hand over the finished product until you receive the final payment.
Direct Debit
Another method to get paid faster is to divide your product price into equal regular payments and invite the buyer to line up a direct debit. Many golf resorts use this method to spread the yearly charges over 12 months therefore softening the one one-off sum payment.
Call the finance department each day
When you’ve submitted your invoice and posted it off, you could call the finance office each day and chance payment. With persistence you will definitely get paid quicker. However your company may not be looked on agreeably when you next come to do business.
Therefore in summing up, make sure you explicitly communicate your payment terms at the beginning and you’ll find it far easier and faster to gather payments quicker.
Molly Jamieson writes for corporate web design company Platonik. Their site contains a portfolio of their corporate web design work.
