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Rule One of Business: Get Paid

Getting paid, like you would imagine is vitally crucial at your business because if you do not get paid, what’s the point in business?

You will be laughing at the loads of business people who only get their clients to pay up when and if they get on with it. I know of such a business owner who repeatedly holds bad debts like accolades. Why, do you think? Simply because he can’t bring himself to request the money and allows people to overpower him.

If you permit somebody credit, do so only if they have cleared themselves to you by paying cash on delivery (COD) for a time. Furthermore, you can find whether they have the means to pay you - if they don’t then you should not do business with them. Don’t push yourself into saying “I need the work” or “I need the sales”. It’s ultimately when you do the job or providing the goods for free if you aren’t paid.

If you are the kind of person who can’t demand the payment when the job has been done, try these ideas:
Tell your customer that when the job is completed, you require cash or cheque. They will more than likely have it ready at at the finish date and you will not need to demand your money.

When you send the quote, be sure your payment terms are simple.

Create an invoice including your terms of payment simply listed and give the customer the invoice when the task is completed. They will look at the invoice and reactively assume they should pay the fee now without you having to say a word. Fabricate a “vicious boss” who might skin you alive if you can not return with the money for the job.

Organise your bank to have you running with Merchant facilities so you can use credit cards including Mastercard and Visa. Many people own credit cards and it can prevent the difficulty of the client not having a cheque account or not having the right amount of cash in their wallet.

Likewise, don’t be asked not to keep hold on any goods til payment has been made. Remember, until they have been paid for, the goods remain to be yours.

If you decide to let a client credit, be sure you have taken the following contact details about them at a point PREVIOUSLY you let them credit.

After you possess all this information, call the bank and make for sure that they operate an account there. Then, ring each of the trade reference and ask if they pay their debts consistently or if there are any dilemmas with them.

Most people will be willing to tell you if the person is troublesome. If everything is OK, allow them a moderate level of debt, say no more than $500 (depending on your business). Monitor the operation of the account for a few months before allowing this amount to be exceeded.

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May 25th, 2010UncategorizedRead More >No Comments