subject: Tips To Make Sure You Get Paid [print this page] "Businesses won't be able to stand with the absence of payment. Your business will suffer a great deal even if you have a lot of accounts receivable but you are not getting any payments. If you are producing something, for example, you need to buy raw materials in order to resume production. Unless payments are received on time, accounts receivable won't count.
The following are some suggestions on getting the compensation that is due for any product or rendered service.
If you have a first time customer or a new account, either you ask for a prepayment, also called down payment, or you ask the customer for a credit reference. He may know a customer of yours who has a good credit record in your business transactions. You could offer him discount or free shipping in return.
If you are brave enough to skate on thin ice, take the precaution of limiting the amount of credit that you will give them on the preliminary orders. You can limit the first three orders to 100 dollars for instance. In this way, you are still comfortable even if the customer doesn't pay on time and your business can still continue operations.
When the compensation doesn't arrive at the expected date, follow the standards of how to make collections. Primarily, mail them a letter of reminder for the first thirty days. Call courteously within the next day then do it again in the next two weeks. Make sure that you don't end the call until you get a commitment from them regarding the date that a check will be sent and how much the check is for. If the customer continues to make promises but doesn't keep then its time to hire the services of a collection agency. They would know how to twist an arm.
If your product or service was ordered by phone using a credit card, call them to verify the account number, when the credit card expires, and the total balance left on the card. When shipping merchandises, make sure to put the name of the person who made the order including the address used. Don't accept PO boxes.
There may be times when the one ordering wants the merchandise to be shipped to another person like a sister or a brother, perhaps. Anybody can just pick up the package anonymously if the address is a PO Box.
