Tips to Ensure Your Small Business is Paid On Time

There’s no running away from the fact making a big sale is always exciting for a business. However, getting paid late is very frustrating because the ongoing expenses have to be covered timely. And worst of all, not being paid will drive the business towards a major loss. Especially if you sell B2B, the chances are that customers will demand a payment pattern. So before you sell, ensure to clear your payment policies along with the credit management practices. Here’s how you can get the customers to pay timely:

  • Create Policies

As a rule of thumb, start with introducing policies that entail paying timely. The credit and collection policies should be upfront, so ensure to offer credit terms to anyone. This should include the credit amount that can be afforded without disturbing the cash flow. As well as making yourself clear about the payment terms. Unless the customer’s aren’t bound by the company policies, they won’t take the payment part seriously. 

  • Track and Review the Payment Patterns

If you already have a sound history of working with a few people in the past, chase them. Here, we recommend you to track their payment pattern to predict the time all of your payments will be received. Right now is the best time to go through the previous customer’s data and see how you can tackle them. For instance, if a hands-on customer with payment is making a delay, it means that they are going through some financial crunch. 

  • Require a Credit Application

Before a customer leaves with a credit, ask them to complete the credit application form. Today, the internet is flooded with a plethora of templates for each of the B2B credit applications. Especially when you don’t know where to start, online credit applications can give you a good idea. Research and know your customers before cementing the decision to work with them. Go through each of the references and don’t rush into a major decision. 

  • Seek Help

If you’re having a tough time collecting payments from customers, we recommend you to work with a professional agency. For instance, if you get in touch with direct debit service providers in Australia, you’ll know they work hard to provide top-notch payment receiving methods to different industries. Especially when you don’t have a staunch payment receiving plan in place, handling these operations to another party is a good idea. 

  • Ask For Deposits

If a large order has been processed, don’t dispatch it unless a concrete deposit has been received. Especially when a custom order is being processed, the customer should be willing to make a handsome deposit. And, if the customer is new, their credit report should be checked. 

  • Offer Early Payment Discounts

If your business is already going through a good phase, offering early payment discounts is a good idea. Especially when it comes to providing employees with an early payment discount, you should provide it as a benefit from your side. This will compel the current and new customers to be hands-on with payment. 

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