Different ways to avoid deadbeat customers

After selling products to a customer and providing a great service the time is now to receive the payment you are owed from the customer. Your invoice was sent and the deadline for payment has passed. You have not heard from the customer and decide to contact the person, so you pick up the phone and call. Then the customer comes to the agreed decision that he will make the payment by the end of the week.

A month later you are still waiting for that payment. How can we avoid this from happening in the future?

Be picky and choose wisely!angry-annoying-customer

A customer orders goods or services and you normally identify what type of person they are and you need to consider you are going to be doing business with them.

How can we identify a bad potential customer before hand? Well, there are some things you can look out for. They are demanding, vague and have an uncompromisable demeanor. If you are at the start of your business adventure then you are going to find it hard to turn a customer down, but you need to take the long-term into consideration as well. How much of your time will this customer take up? will he pay you on time? Will you spend more time on content changes or other services depending on what you do?

Maybe you are a painter and decorator and he asks for another coating of paint on the front door but you already did your job and in the end, the cost of doing the work does not even cover the cost of the paint you used.

Taking payments upfront!

Now, this could seem obvious but by simply taking payments upfront you do not need to go chasing runaway customers for unpaid invoices.

There are many customers who don’t take upfront payments out of fear of losing customers but in the end, you have a job to do, but if you are spending all your time chasing unpaid invoices, where do you find the time to get your next list of jobs completed?

Charge interest rates to overdue invoices!

By including a simple statement on invoices you can indicate that interest will be claimed if the client fails to pay their bills owed to you on time. If the invoice is not paid by end date specified the bill will increase. This is normally enough to get the client to pay up. In some cases, interest rates cannot be applied so you will need to check if this option is available to you or not.

by including a simple statement on invoices you can indicate that interest will be claimed if the client fails to pay their bills owed to you on time. If the invoice is not paid by end date specified the bill will increase. This is normally enough to get the client to pay up. In some cases, interest rates cannot be applied so you will need to check if this option is available to you or not.

Late commercial payments: charging interest debt recovery


The information on this page was inspired by Danny Pardoe