Rule One of Business: Get Paid
To be paid, just as you would realise is essentially important at your business because if you aren’t paid, what are you doing in business?
You would be laughing at the amount of business people who only have their clients to make payment when and if they get around to it. I know such a trader who continuously makes bad debts like awards. Why, do you think? Probably because he can’t bring himself to ask for the cash and allows people to use him.
If you allow someone credit, do it only after they have proved consistency to you by paying cash on delivery (COD) for some time. Secondly, you should find whether they have the money to pay you - if they don’t then why do business with them. Don’t kid yourself into thinking “I need the work” or “I need the sales”. It’s damaging when you do the work or providing the goods for free if you are not getting paid.
If you are the type of person who can’t ask for the cash after the job has been completed, try these tips:
Tell your customer that when all the work is done, you will require cash or cheque. They will more than likely have it ready at completion and you don’t need to ask for your pay.
When handing out the initial quote, make sure your payment terms are plain.
Create an invoice that has your terms of payment clearly listed and give the customer the invoice when the task is completed. They will see the invoice and immediately assume they can pay it off now without you going to say a thing. Fabricate a “vicious boss” who may flay you alive if you do not leave with the cash for the service.
Arrange with your bank branch to hook you up with Merchant facilities so you can use credit cards such as Mastercard and Visa. Many people have credit cards and it can stop the issue of the customer not owning a cheque account or not having enough cash on hand.
Otherwise, don’t be persuaded against to keep hold on the goods till after you have been paid. Remember, until the goods have been paid for, they still are yours.
If you decide to allow a customer credit, be sure you get the following contact details of them a week PREVIOUSLY you permit them credit.
- Name
- Address
- Phone number
- Bank name and address
- Account no.
- 3 trade references with their names, addresses and phone numbers
After you take all this detail, contact the branch and make for certain that they do use an account at there. Then, phone all of the trade reference and find out if they pay their fees consistently or if they have had any problems 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.
If you’re looking for a Brisbane web design company or Brisbane SEO company, talk to Search Tempo. Check out their SEO prices today.
Sphere: Related ContentComments
Tell me what you're thinking...
and oh, if you want a pic to show with your comment, go get a gravatar!