Premium Essay


In: Computers and Technology

Submitted By ProblemStarter
Words 357
Pages 2
Avoid taking on new customers with bad credit. Pull a copy of the potential customer's credit report to look at their bill-paying history, and verify that no bankruptcy has ever been declared.
Obtain a list of suppliers that currently work with the potential customer, and call them to see if they have a satisfactory payment record. Requesting a copy of the potential customer's balance sheet to review their assets and liabilities is also recommended for a bigger picture of the business. Obtain a signed contract from clients that clearly spells out expectations for delivery and

payment -- including any fees for late payment. The contract should be signed by both parties

and dated. Having clients initial each paragraph after it is read can go a long way to proving they

understood the payment terms, if a situation ever needs to be taken to court.

Build relationships with your clients that make it difficult for them to ignore your requests for

timely payment. Communicate often with a simple phone call or dropping by to see if their needs

are being met. Develop friendships with the company's leadership. Hold events to reward your

customers for being good clients.

Offer incentives for paying early. Examples can include a discount of 2 to 3 percent if the bill is

paid by the due date; free delivery on the next order; or free advertising on your website.

Likewise, impose a penalty for late payments, such as fees or interest, which is clearly spelled

out in the contract.

Call the customer the day after payment is late to check on the status. Inquire as to when the payment will be mailed, or request drop-off delivery to ensure it is received on time. Ask about the state of your customer's business to find out if business has slowed or the customer is having financial problems.

Refuse to do business with…...

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