Ways To Avoid Sending Your Customers To Collections

 It would be nice if every person that you did business with honestly paid you on time without a problem, but that is in a perfect world.  There may be a time down the road when you will have to send your customers to collections.  If at all possible, you want to try and prevent this from happening.  Here are 3 ways you can make sure that you are paid in a timely manner.

 1. Early payment discounts

By offering an early payment discount, you can increase the number of people that pay before their payment is due.  You do not want to offer a ridiculous discount, but a two to three percent discount is sufficient enough.  This way you do not lose that much money, but you can still intrigue customers to pay early.  It is a great way to cut back on overdue payments.

 2. Require deposits

When you require deposits, you are ensuring yourself of a way to get your money.  Some small businesses do well to ask for 50% upfront before the job is done and then the remaining 50% after the work is complete.  This will make sure you are at least paid something for your work.    

 3. Accept credit cards with Dial Pay service

In today’s day and age, there are millions of people that rely solely on making payments with their credit cards.  The easier you make it for your customers to pay, the better chance you have of collecting all of your earnings from customers.  It is becoming increasingly important that even small businesses accept credit cards.  This will give the customer another option for payment and allow them to choose which method will work for them. 

Your ultimate goal is to collect your payment without having to send your customers to collections.  Therefore, the more options you give your customers the better chance you have of receiving the payment.  Simply having a credit card merchant account on your website or in your place of business may not even be enough.  You may want to consider broadening your horizon and accepting credit cards by phone.

If you do decide to have mobile credit card processing, you will have a powerful tool for collecting late payments from your customers or clients.  More than likely they do not have the cash to pay you for your service.  No problem, simply pull out your cell phone and do the transaction right there with your credit card and get back to business.    When you accept credit cards over the phone in this manner, you also add flexibility and convenience to your customers and they will love you for it.

Having to deal with collections is the last thing you want to be doing with your business and customers.  Therefore, giving them options can assure you that you receive every penny owed.  Whether it is offering early payment discounts, requiring upfront deposits, or starting to accept credit card processing, giving options will help make sure you are paid on time every time.


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