No one likes being in those tough situations where a client is late on a payment and you have to make a collection call. Collection calls are usually held off and made haphazardly only when you’re short of money and need those funds to pay expenses. By holding off on making that call and collecting, your business and cash flow suffer.
You’re never too busy to make collection calls, no one likes to make them. They can be tedious and risky. It could create tension with the client and potentially jeopardize future business with that person – or you could not get paid at all. Take a look at these tips to help make sure that you get paid on time.
By adding an acceptance letter to your invoicing process, the client signs this document after you have delivered your product/service but before invoicing. Make it clear that everything has been delivered, it’ll prompt clients to disclose any potential issues they may have.
If the dispute is valid, address the issue immediately. In this case, consider showing them the signed acceptance letter. Only if this approach doesn’t work, then consider speaking to a legal counsel to determine the best solution.
Track Your Invoices
Take notes on a notepad or use the invoicing aging report that comes with most standard accounting packages. This will allow you to keep track of who owes you what and when.
When the invoice is a few days past due, give them a call and ask if there are any issues and if they can provide you with an expected payment date.
Always remember to show your client respect and professionalism – even if they don’t show it to you. This is both a good business tactic but also a good collection tactic.
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