SCORE Small Business Blog

Manage: Get Your Customers to Pay on Time
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How-To Collection Tips

Getting paid in business can make the difference in being profitable or, in some cases, being put out of business. Receivables need to be managed and are always a struggle as no one likes asking for money. Here are some tips to get customers to pay.

  1. Offer a discount to customers who pay within 10 days 1% or 2%
  2. Ask customers to pay a portion of the invoice when service is rendered or an order is placed
  3. Personally make calls to customers who owe money
  4. Delegate a person within the company to make calls
  5. Send out friendly reminders
  6. Offer incentives or rotate stock if inventory is sitting
  7. Credit card payments should be encouraged. It is known that customers will purchase more if a credit card can be used. Know that credit card fees can be negotiated. Contact more than one company to compare rates.
  8. If you have to hire a collection agency always negotiate the fees it can run as high as a third.

Good Luck and please share things that have worked in collecting money in your business.

Julie BranderBusiness Mentor, SCORE New Haven
Julie has been a SCORE volunteer since 1997. She has 20 years of experience in business, starting a manufacturing, wholesale and retail jewelry company. After selling her business, she dedicated herself to helping other entrepreneurs start and expand their business.
www.scorenewhaven.com | @juliebrander | More from Julie

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Discussion (1) Comment


  1. Tasha ChawnerVisitor

    Point Number 1 has given me food for thought – especially in relation to Custom Orders – thanks so much.
    Cheers,
    Tasha

 

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