Tips for Getting Clients to Pay on Time
As a business, getting your clients to pay on time is essential. When your clients fall behind in getting you paid, then that trickles down and before you know it you will be behind on paying your own bills. Whether you are in Rocklin and Sacramento or somewhere else in California, this is a scenario that can end up crippling a business before too long.
Most business owners realize just how important it is to get clients to pay. Yet they may not know where to start in making it happen. While you can’t put the check in their hands and make them sign, there are some things you can do to help improve your chances of getting your clients to pay on time, including:
- Being clear about what your payment terms are. Be sure to get it in writing so that there is no question later. If it is a client you will be doing repeat business with or it is a large amount of money, have them sign a contract that details the payment term specifics.
- Offer your clients a discount if they pay ahead of time or immediately. Even offering a five percent discount may be a good incentive for your clients to work at getting you paid right away.
- Require that you get a deposit or down payment when you are beginning work for your client. That way you have some of the funds, and paying the balance may be easier for the client because it is a smaller amount.
- Include a penalty for late payments, even if it is a small fee. This can be a deterrent that may motivate them to pay faster.
- Always remain professional and document any attempts to collect payments. Be sure to write down who you spoke with, the date, and what was said.
Getting clients to pay on time shouldn’t be a challenge for most of the people you do business with. But businesses in Rocklin, Sacramento, and around the state will find that they do tend to have a few clients who will drag their feet. Employ some of the tactics above to get people to pay on time, and don’t hesitate to contact an attorney to have a professional review your contract, or to help write a letter to collect on a debt. A business attorney can often help get clients to take their payment obligations a little more seriously.
The Law Offices of Terry L. Gilbeau provides personalized counsel to clients in a variety of business and personal matters, including creditors’ rights, debt collection, products liability and international transaction issues. His office is located in Rocklin, CA, just outside of Sacramento, CA, near Roseville, Lincoln, Auburn, in Placer County and can be reached at (916-626-5539) or email Terry at firstname.lastname@example.org. Click here for the firm website http://www.gilbeaulaw.com/