If you’re a business owner, then you already know that it’s a costly game to be in. You need to invest in your products and services, pay for the office and electricity, buy supplies, and so on. Yet sometimes, we can’t rely on the money that we thought we’d earned to buy all of these necessities. Sometimes, the people who owe us money aren’t so forthcoming when it comes to actually giving it to us. As if running a business wasn’t tough enough! But fear not. Take the recommended steps below, and you’ll be increasing your chances of getting paid when you expect to be paid.
Do As Expected
If you want to get paid on time, then a good place to start is to live up to your end of the agreement. Before you think about getting the money from your customers and into the bank, focus on doing your job well. You’ll be in a much stronger position to ask for your money as you agreed if you’ve gone above and beyond of what you said you’d do. In other words, make sure you’re walking the walk before you begin making demands for money.
Get it in Writing
An agreement that’s based on a handshake may have been effective in the past, but today, it’s much less likely to stand up to the pressures of the modern business world. While there will be plenty of people who pay up on time, some people may take advantage of this casual agreement and avoid paying straight away. To ensure they live up their end of the bargain, have a contract drawn up by using a service like the one available at Weisblattlaw.com/contract-drafting/. This way, you won’t just be relying on their goodwill to get your money on time; you’ll have the law on your side.
Offer an Incentive
Even when you know a customer is going to pay, sometimes you’d much prefer to get your cash as early as possible. The problem is, there’ll be no incentive for your customer to pay quickly…unless you give them an incentive to do so. Consider offering a small discount – say, 5% – if they pay within a week of the invoice being sent. You should also ensure they’re well aware of any penalties they’ll have to pay should they not pay before a set date.
Trade In Your Invoices
If you’re really struggling for cash, then you can always take those unpaid invoices and cash them in with a factoring company. You’ll get a big percentage of the overall value, without having to wait for the customer to pay up. Perfect!
Cut out the Bad Eggs
Finally, if you have some customers who always pay late and are forever putting you in difficulty, then consider cutting them out. Your business may run much more smoothly if you take the time to find better clients who you know will pay in demand. You don’t have to work with clients who don’t respect your business!
