Sooner or later, every merchant faces payment delay issues. Several customers often postpone the transfer commitment. As a result, cash flow circulation runs out.
And here comes a real challenge, as every company needs means for its own staff salary and for operating necessities. Therefore, the question arises as to which strategy to implement in order not to be walking out the door.
Here are some tactics to put into practice
Payment option variety availability is of a big deal
Considering useful payment methods for both parties of the deal makes sense. If one of them finds payment option inconvenient, payment commitment anticipation may last forever. The easier payment process is organized, the simpler it will be for merchant to get transfer in time.
Setting of multiple payment options is the best way to tackle the issue in entrepreneur favor. Available diversity fosters consumers to accomplish the transaction quickly and to forget about it. In order to get the payment in the shortest time, just let the customer to accomplish it in a convenient way, whether by cash, bank transfers, credit/debit cards or mobile phones. Otherwise, clients tend to drag their feet for a long time.
Get Your customers interested
It would be a nice idea to look at the situation differently. To avoid further payment delays and to encourage charge in advance it is worth to establish rewards for paying early. The bonuses could be in form of discounts or special offers. Even small one can inspire customers to take the wallet out.
Indication of the reward period also could work. Especially, an effective trick would be, if the bonus is surefire in case of early payment by large invoice.
Be merciless with non-payings
Unless the transfer accomplished in time, it would be reasonable to implement charge policy. According to people’s nature, they won’t agree to pay more, than the price they have chosen. The fact of penalty will definitely shorten the amount of laggards.
Such clause can be specified in invoice for customers to know in advance about charged fee for payment’s postpone. Clients should be informed about due dates.
Prepayment option also works
Have You ever practiced an up-front payment method? It may appear to be very effective one. If decided to be implemented, this condition should be stated in the deal contract. Especially, the prepayment is recommended, when working with new clients. Otherwise, merchant can offer to extend the credit, if he is confident in clients’ responsibility to pay.
E-mail alert as a good assistant
It is never redundant to notify the customers about their payments. Sometimes they just forget about their obligation and a discreet alert will entice them to pay up. On the other hand, it will spur non-payers, who have unfulfilled commitments.
This service could be set up to send e-mails automatically and thus to remind about payment or to inform about delay fees.
One more important moment is to use polite words while communicating with customers. Investigation has revealed, that gentle handling with buyers is matter.
One click and commit payment in seconds!
Innovation technology also can help in stimulating non-payers. There exist a special service to pay immediately by clicking a button. It can be placed either in invoice or in e-mail notification. This innovative design facilitates payment process exponentially. By clicking the paying button customers are redirected to the link with payment information, where they can commit transaction immediately.
Just take a pause
By aiming to prevent delinquent payments an account of certain customer can be put on hold. In this case client is informed about dead-lines of the suspension, thus the delay comes under takeover.
In addition, to have all payment procedures under control, there should be established a system of monitoring all cash flows. Thus, nothing could evade merchant’s eyes.
Cooperation with customers needs to be carefully considered and rationalized. The payments collecting strategy is one of the core aspects of healthy and prosperous business.
It should be borne in mind, that whatever payment policy is implemented, it must be clear for clients as well as they should be warned, if there are any amendments. That is concerned also the charging fee or rewards policy.
The main rule to follow is to be open to customers but not to forget about Your own concerns.