How to Make Sure Your Customers Pay You
The volatility and uncertainty engulfing the economy have plagued business owners and customers alike. In fact, customers do not pay on time and request payment extensions on bills. This causes a ripple effect on business cash flow and outstanding balances. As customers do not pay, businesses fall behind on their debts.In fact, according to American Express OPEN Small Business Monitor, about 60% of business owners are experiencing cash flow problems and about 26% are concerned
about paying their bills on time.
However, there are several things businesses could do to relatively mitigate such damage.
1. FIND OUT YOUR CUSTOMER’S CREDIT WORTHINESS.
Businesses who put some effort into finding out their customer’s payment history before doing business with them, might have a better understanding of their clients’ financial well being and credit worthiness.
- Cortera’s Credit Exchange Website: This WEBSITE offers detailed information on the person in charge of finances and the volume of work the business does. In addition, the user could get information on whether the potential customers pay on time or not. Every report costs $3.
- Dun & Bradstreet Inc.: This WEBSITE offers solvency and delinquency reports to help you gauge credit risks customers may pose. However, the service relatively costs more and this is more appropriate for medium-sized to large businesses.
2. OFFER YOUR CUSTOMERS VARIOUS PAYMENT OPTIONS
Have the following payment options clearly and prominently displayed on your website.
- PayPal: Most of us know about PayPal. PayPal offers a flat percentage fee based on based on volume, ranging from 1.9% to 2.9% of the sale price PLUS 30 cents per transaction.
- Google Checkout:This is another easy and useful tool to help out your business and your customers alike.
3. SUPPLY YOUR EMPLOYEES WITH MOBILE DEVICES
Providing your employees with cell phones, Bluetooth devices that allow credit card numbers to be punched in manually or swiped at the customer’s home.
You can also use:
- Intuit GoPayment: This mobile application SERVICE costs $20 a month, with a set-up fee of $60. Per transactions fee RANGES from 1.64% to 3.54%.