4 things you need to do regularly to get paid on time.
Time is a luxury most small business owners don’t have. By sharing these 4 things that if you implement consistently will help you get paid on time and with you spending hours chasing money, you know you’d be mad not to read on – right?
There are four things in credit control, which if you’re consistent with will help you get paid on time.
So what are these four things? I often get asked that question so I just want to share them with you.
Invoice on time
Always make sure you raise your invoice while the customer is still aware of what it relates to. Whilst they still have the passion or the enthusiasm of receiving the goods or service.
Be known as the person who checks their invoices, who never sends out incorrect invoices and who understands what it means to be a customer to understand your invoice.
Make sure it’s received by the right person
If you have a customer who is not regularly paying you on time, don’t presume they’re bad payers. Make sure they’re actually receiving the invoices, that the email address is right, that the postal address is right, that the name is right, that both the accounts person and the authorising person get a copy and finally
Follow up quickly on late payments. Don’t let late payments fester. The longer it takes you to follow up a late payment, the later the payment will be.
If you consistently implement these four ideas, then your debtor days will reduce. It’s about forming habits. If you can form these four habits, you’ll get paid quicker, you’ll get a better relationship with your bank, you’ll be able to negotiate harder with your suppliers and you’ll have the money for the fun things to do with your family or reinvest in your business