4 Tips on Getting Your Customers to Pay Consistently

Collections Training Resource
May 8, 2013 — 1,022 views  
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Collection professionals quite often face the problem of getting their customers to pay on time. While big business can overlook the issue of an occasionally unpaid bill, the matter cannot be considered to be overlooked by small enterprises. It is important to avoid the complications that arise due to such situations. To ensure that businesses get paid in time, collection professionals can employ the methods mentioned below for customer debt collection.

Do a Prior Check

Prevention is always better than trying to figure out a cure. So, it is better to do a prior check on your customer’s credit rating before advancing any credit. Customers having a history of unpaid bills and bad credits are likely to repeat their mistakes in the future too. If the credit ratings are satisfactory, you can carry on with the process.

Produce Prompt Invoice

An invoice is the first thing a customer should receive after he/she receives a product or service. The invoice should be accurate, clear, and must contain all the information that a customer requires to make the payment. Take extra care in generating invoices as you do not want your payment to get delayed, just because of an inaccurate invoice.

Send Notices

Some customers may tend to lose bills or might even forget to keep an account of the invoices. In such a situation, sending monthly statements to your customers will help. These statements should list your customer’s unpaid invoices and payments. The statements will alert your customers of the bills that are due. It will also make them realize that you expect prompt payment.

If the customer fails to make the payments by the due date, then you should send out a customer debt collection letter. The collection letter should specify that the payment is overdue and the customer has to pay immediately in order to avoid penalties. The letter should also mention that the issue is not just about paying the money, but the whole business relationship will be at stake due to the customer’s irresponsible and careless behavior.

Offer Penalties and Incentives

Let your customers know in the beginning itself that late payment of bills would lead to undue penalties. Let them know that some extra amount will be added to their bills, once they have past the due date. If the customer has a history of paying promptly in the past, then you can ignore the flaw once. But the customer should agree to make the payment within a later date that is agreed upon by both parties.

Along with penalties for customers who don’t make the payment on time, offer incentives if the payment is made on time or before time. Let your customers know about the same too. This can include some discount or price breaks. Also, give special offers to customers who never miss the deadline and make the payments on time consistently. It is essential that you build a good rapport with customers who should pay the overdue bills. If the customer receives personal attention he/she will be dedicated to make his/her payments in time.

Collections Training Resource