Are you frustrated because some of your clients are taking 60 to 90 days or even longer to pay their invoices? Recently, I had a coaching call with a promotional products distributor who was having cash flow problems because some of her clients were taking months to pay their invoices. It was causing her stress-filled days and sleepless nights. Can you relate?
Below are my top nine tips for getting paid faster.
1) Investigate your client's paying history before you process an order. Ask for current credit references and banking information and use it to establish credit worthiness.
2) Be clear about your payment terms and have your client sign a payment agreement before you process the order. It’s also a smart practice to get to know the people who write and sign the checks.
3) Ask for pre-payment or a deposit on all orders that will, at the very least, cover your costs. Do this for all first time orders and subsequent orders if need be.
4) Follow up with the client the day the order arrives to make sure they are happy with the merchandise. This will eliminate surprises and late payment problems, plus it will give you an additional opportunity to thank the client for their business.
5) Offer a small discount for payment in advance or payment within 10 days of the invoice. Many clients appreciate this offer and will take advantage.
6) Set up a merchant account to accept credit cards. Although you will lose a small percentage of the sale, I believe, the increased cash flow is well worth it. Additionally, many companies will pay faster with a credit card.
7) Offer electronic bank transfer. These days many companies will pay via wire transfer because it saves them time and effort in the long run.
8) Reward them for prompt payment. Send clients that pay promptly a hand written personal note or small promotional gift that lets them know how much you appreciate their prompt payment. Behavior that gets rewarded is most often repeated.
9) Consider affiliating with a larger promotional products company. A larger distributorship will handle the invoicing for you and many will pay you as soon as the order is entered in their system.
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Speaking of affiliating with a larger organization, if you've been considering making a change in your promotional products career, and you want an objective opinion, I can help. Contact me for a free, confidential consultation and I'll help to point you in the right direction.
Rosalie Marcus, The Promo Biz Coach, is a promotional products business expert, coach and speaker. Combining her skills and years of experience in promotional sales, she helps her clients sell more at higher profit margins and dramatically increase their incomes! Get a FREE special report: 10 Big Mistakes Promotional Professionals Make and How to Avoid Them at www.promobizcoach.com. Reach her at Rosalie@promobizcoach.com or (215) 572-6766.