Pay Day Delay?
You’ve attracted a big client, collaborated effectively and done a stellar job. Then payday comes, and there’s no check in your mailbox. Sound familiar?
More than half of women owners surveyed say not being paid by clients or customers is one of the biggest risks to their business – and one they didn’t anticipate.
Another report shows nearly half of business owners say 5 percent or more of their customers make late payments during an average month.
“Every owner struggles with their accounts receivable,” says Victoria Kidd of OMP Consulting Group LLC. “The process of requesting payment is uncomfortable.”
She says women’s relationship-building tendencies sometimes cause owners to
allow accounts to age beyond a reasonable period. So, what can we do?
“[An] important part of building a customer relationship is establishing the expectations of the service provider and the customer,” says Kidd.
She recommends establishing payment terms in advance, explaining when late fees will be applied and when the balance will forward to collections. Charging an initial deposit and using the same credit card for future payments when services are delivered will help.
“[With] large businesses, immediately follow up to inquire what payment terms have been included in [your company’s] vendor file,” adds Kidd. With smaller clients, she always makes sure the bill was received first.
Offering discounts for early payment and creating a watch list of slow payers are ways experts say you can avoid outstanding bills. Plus, programs like Wave Accounting record if and when an emailed bill was opened.
Bonus PINK Link: When it comes to getting paid, do mean girls really win? Find out here.
By Caroline Cox
“My success is based on persistence, not luck.”
Estée Lauder
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