Rule One of Business: Get Paid

25 May, 2010 (08:18) | Uncategorized | By: Captain Social

To be paid, just as you would realise is fundamentally fundamental in your business because if you aren’t getting paid, why are you in business?

You may be shocked at the loads of business people who only have their customer base to pay up when and if they get around to it. I am acquainted with such a business owner who always holds bad debts like charms. Why, do you think? Just because he won’t bring himself to ask for the payment and people overpower him.

If you let someone credit, only do so when they have proved their integrity to you by paying cash on delivery (COD) for some period. Also, you must see whether they have the money to pay you - otherwise don’t do business with them. Don’t trick yourself into thinking “I need the work” or “I need the sales”. It’s damaging to do the job or providing the goods for free if you aren’t getting paid.

If you are the type of person who can’t ask for the fee after the work has been completed, try these ideas:
Tell your customer that when the service is done, you require cash or cheque. They should more than likely have it ready at completion and you will not need to demand your fee.

When you give out your quote, be sure your payment terms are understandable.

Create an invoice with the terms of payment evidently listed and send the customer the invoice when the job is completed. They can see the invoice and immediately understand they have to pay you for it now without you having to say a word. Manufacture an “evil boss” who may torture you alive if you can’t go back with the pay for the service.

Ask your bank branch to hook you up with Merchant facilities so you can take credit cards for example Mastercard and Visa. The large majority of people use credit cards and it should cease the difficulty of the client not operating a cheque account or not having enough cash in their wallet.

As another option, don’t be persuaded against to hold onto the goods until after the payment has been made. Know, until the goods are paid for, they still are yours.

If you choose to permit a customer credit, make sure you have taken the following details off them some time BEFORE you allow them credit.

  • Name
  • Address
  • Phone number
  • Bank name and address
  • Account no.
  • 3 trade references with their names, addresses and phone numbers

When you take all this information, call the bank branch and make sure that they use an account at there. Then, phone all of the trade reference and request if they pay their fees consistently or if they have had any dilemmas with them.

Most people will be willing to tell you if the person is troublesome. If everything is OK, allow them a moderate level of debt, say no more than $500 (depending on your business). Monitor the operation of the account for a few months before allowing this amount to be exceeded.

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