For larger projects or extended contracts, it is beneficial to ask for partial payments or deposits upfront. This approach reduces the risk of non-payment for the entire amount and provides a buffer for your cash flow.
State Late Payment Penalties Clearly
Clearly define penalties in your credit terms. Applying interest on overdue balances incentivizes customers to pay on time & compensates for any inconvenience caused by late payments.
Regularly Monitor Customer Accounts
Regularly review customer accounts to identify potential credit issues early on. If you notice changes in a customer's payment behavior, take prompt action to address the situation.
Maintain Open Communication
Keep communication lines open with your customers regarding their outstanding balances. Building a good rapport and addressing payment concerns or disputes promptly and professionally maintains a positive relationship.
Utilise Credit Management
Embrace using your accountant to complete credit management for you. they are an outside party meaning they can push for payment without you ruining your customer relationship.
Consider Requesting Part Payments or Deposits
For larger projects or extended contracts, it is beneficial to ask for partial payments or deposits upfront. This approach reduces the risk of non-payment for the entire amount and provides a buffer for your cash flow.
State Late Payment Penalties Clearly
Clearly define penalties in your credit terms. Applying interest on overdue balances incentivizes customers to pay on time & compensates for any inconvenience caused by late payments.
Regularly Monitor Customer Accounts
Regularly review customer accounts to identify potential credit issues early on. If you notice changes in a customer's payment behavior, take prompt action to address the situation.
Maintain Open Communication
Keep communication lines open with your customers regarding their outstanding balances. Building a good rapport and addressing payment concerns or disputes promptly and professionally maintains a positive relationship.
Utilise Credit Management
Embrace using your accountant to complete credit management for you. they are an outside party meaning they can push for payment without you ruining your customer relationship.
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