4 Tips For Obtaining Payments
Posted on: 7 August 2019
If you're the manager of an accounts receivable department, you may need to get creative with obtaining some of the payments. Some customers may forget to pay on time, and this can create an issue for any business. It's ideal to know specific things you can do that will ensure that all individuals make the proper payments.
1. Avoid giving too much credit
It's in your best interest to be mindful of the amount of credit you do provide your customers. You may want to avoid automatically extending credit because this can give too much cash.
Set a specific number in place and stick to it for most of your customers that finance items. Never increase this amount except in rare instances, such as having a very loyal and consistent customer.
2. Send invoices monthly
You'll want to be prompt and timely with any invoices you need to send out each month. Aim to get these in the mail at the exact time monthly to allow you to get the payment on time.
It's likely your customers will pay more routinely when the invoices always arrive at the exact time every month. Setting a routine in motion is a great idea to help your accounts receivable management department run much more smoothly.
3. Reward prompt payment
One of the top methods for ensuring you will get the money you need monthly without concern is by giving your customers an incentive to pay on time. For instance, you could offer a specific percentage off the entire payment when it's made early.
Doing this will be very motivating for your customers to send you the cash for any merchandise that's been purchased swiftly.
4. State terms and conditions clearly
You'll want to let it be known on each invoice the precise amount of money that's due for each account. Putting this figure at the very top of this statement in large and bold letters is vital to ensuring you receive the right amount.
Don't neglect to put a due date in place and any late fees that will be applied if the payment is not made in time. Ensuring your invoices are made correctly can make a significant difference in being paid.
Running a company isn't easy or even being a department manager. However, setting a plan in motion and being proactive is the key to getting the payments your business is owed.
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