Late payments. How can I encourage them to pay on time?

[hatchling]

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Hi guys,

Over the past couple of months I have been experiencing the pain of late paying customers

I’m in the process of setting up some payment terms to encourage my clients to pay on time (or at least communicate with me otherwise).

I was thinking about charging a % per month the payment is late then passing it on to the collector after a couple of months, however I want to be able to build trusting relationships with my clients so that is never an issue.

In your experience, what is the best and most friendly way to ensure payments are made on time?

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[ickle Kids]

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I hear you! Totally painful when customers don’t pay on time.

I have had heard of:

* x% discount if they pay the whole amount before a certain date. I’m sure they add on a the same x% to the total price to give them a buffer so to speak
* why not offer them an added value for their next service if they pay on time or ahead of time. This will most likely build loyalty as well.

Anyway, just a few thoughts. Good luck!

[King]

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there is quite a long thread on this topic. Search is a bit hard at the moment, but if you give it a go, then you will pick it up. Lots of good responses

[Anonymous]

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Hi Bec,

I think this is the thread that Matt (King) is referring to: http://www.flyingsolo.com.au/forums/money-matters/7032-invoicing-slow-payers.html

All the best,
Jayne

[Accounts Studio]

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If I have late payers I first try playing on their sympathies a bit – email them explaining that whilst I would love to offer them extended credit terms I am also only a small business trying to make ends meet and unfortunately cannot do so etc etc. So far it has worked every time.

[Author]

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