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How to expedite slow-paying clients. One of the greatest frustrations can be slow accounts receivables. You’ve done the work now. How do you get paid for it so that you can run your business? Here are a few tips that have worked for me over the years.
Get paid for your services and move on to the next client. Many of us have been ripped off in the past. I can honestly say I have only had it happen to me twice in 18 years, but advanced technology should certainly make it easier for us to get our money these days.
There is NOTHING worse than completing the work than being lied to and misled about the check being in the mail etc.
The worst part is like a fool; you are waiting for the mailman (or your ACH) for a check that the client KNOWS is not coming. You can save yourself from all of this by doing a few simple things. First: Always have high esteem when it comes to your business.
By high esteem, I’m not saying “Arrogance” I mean believing in your business, knowing your VALUE, and having an appreciation for what you do.
If you show signs of weakness, potential clients can see that, and they will take advantage. Here are 7 tips to collect your money in a timely fashion without chasing the cash.
Ask for the Money Up Front
This is simply the best way to do it. However, you can’t blame them if they are suspicious and wonder if they will get what they have paid for. Nevertheless, that’s not for you to worry about IF they came to you. If you go to them, then this method may or may not work.
Imagine you ask someone to support your business and then give you the money before you do the work. That’s kind of an insult, and it looks like you are desperate for money. Treat each situation accordingly.
Offer a SLIGHT Discount if they Pay Up Front.
I would not give them more than a 10% discount. Keep in mind whatever you offer them is what they are going to expect each time.
Tell them New Clients Have to Pay up Front.
This is a good rule, but only if they come to you. If you go to them or if it’s a corporation, you should not expect to be paid upfront. You can offer independents a“new client discount” if they pay upfront.
Ask them if they use Paypal, Zelle, and Cashapp … NO, Tell them you ACCEPT Paypal, Zelle, and Cashapp.
If you ask them, they may make up an excuse because they don’t have the money upfront. Remember who is in the driver’s seat. TELL them you accept Paypal instead of asking them.
Technology is changing the face of business and helping you to get paid for your services faster. (thank God) now you don’t have to pay outrageous fees to have someone pay you with a credit card.
You can just use a small device on PayPal called the PayPal Card Reader and charge them over your cell phone. There is a small fee, but PayPal also offers pay by email and more features, and they don’t have to be a PayPal client. Did I mention I LOVE all three?
If They are a New Client, they come to you, and they Can’t Pay upfront…
Don’t crawl or walk but RUN. This is a sure sign you are about to get ripped off, and you will not get paid for your services.
They Come Back After Being a “Slow Payer” the Last time?
Tell them you have to collect upfront. Remember, have esteem in your business. Your bill collectors do not want to wait to be paid after they provide a service, so why should you. You have obviously made a good impression on them if they come back now, it’s their turn to show good faith for their mistakes. If they can’t pay upfront, at least get half or walk.
Avoid Small Talk Get Straight to Business.
If someone comes to you for business, MAKE IT business and avoid small talk at all costs, you are a busy black entrepreneur, and you need to be paid for your services.
The small talk is a setup to ask for a discount or some kind of deal that’s gonna work more in THEIR favor. Don’t fall for it. If they can give you small talk to get the business, they will BS you when it comes time to pay too.
Tags:accounts receivable, small business
