You should know as a business owner better than anyone that you depend on your customers to keep you around.
That said what can you do when your customers are lagging behind in paying you?
Yes, those payments that you rely on to keep you in business may not always come in on time. As a result, you are left at times wondering how you will pay your bills.
So, is this an issue your business has faced over time and how have you addressed it?
Don’t Feel the Financial Pinch When Customers Are Behind on Payments
If not all your customers are good at paying you on time, there are some steps to consider.
- Do you make it easy for them to pay in the first place? – The first question you need to ask yourself is do you make it easy for customers to pay you in the first place? It may be a case where you in fact are not making payment options as easy as they could be. If you have a walk-in place of business, customers should of course be able to pay there. If you work out of your home or do not allow customers into your office, this can make it a little more challenging. One option to consider in receiving payments would be a wire transfer vs. ACH. You can sit down and determine if one is better than the other for your business. Know these and other forms of possible payment so that you are as educated as possible on the matter. The bottom line is getting your payment as fast as possible. Keep in mind that delays mean you can fall behind with your own business and personal expenses over time.
- Are online store payments an issue? – Do you operate an online store? If the answer is yes, how easy is it for customers to pay you on time? Some find it aggravating when they go online to shop and come away without what they wanted in the first place. For some, this is the result of the checkout process not working the way it is set up to. Don’t make a consumer go all the way to the end of the process and then have difficulty making the order and paying you. This is why it is good to review your online store from start to finish. See if there are any hiccups in the process that you need to address.
- Will you have to go to collections? – Finally, most business owners will tell you that having to go the collections route is not a lot of fun. Not only does it cost the business owner time and money, but there is no guarantee they are going to get their money. Do all you can to avoid the collections route unless you deem it to be your only action when others are exhausted.
If some customers leave you hanging, review your typical steps for payment in the first place.
Some adjustments on your end or holding their feet a little closer to the fire may be your only options to get paid.