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Encouraging prompt payments from your customers

On Behalf of | Dec 19, 2022 | Business & Commercial Law

You have loyal customers and you’re also managing to attract new clients. Usually, business runs smoothly. You provide a high standard of service and your customers are happy to pay for this. 

Unfortunately, there are a few customers who have been late with payments. Not only is it time-consuming to chase payments up but it can also end up costing you money. Outlined below are a few strategies for getting prompt payments from your customers

Are your contracts clear?

Whether you’re making multi-million dollar deals or selling high volume for lower prices, it’s always best to have agreements in writing. This way you can set payment terms, including the precise dates that the balance should be settled. Not only does this give your customers advanced notice, but you have something to fall back on if the payment is late. 

Contracts work both ways, so your customer also has protections. For instance, if your accounting team makes an honest mistake and overcharges, this can be rectified easily by reviewing the document. The mutual benefit of written agreements should motivate both parties to get on board. 

Can payments be automated? 

If you’re selling products in high volume to the same customers, perhaps they might consider setting up automated payments. By utilizing technology, both parties can save time, effort, and ultimately money by having an automated system in place. 

Pursuing overdue invoices can be stressful but you have a right to be paid for the work you have done. If you’re in any sort of business dispute, make sure you seek some legal guidance