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Tips to Increase Profits - Chase Up Payments

April 17, 2012 | Comments: 0 | Views: 162

In the event that people are late paying, many businesses just sit back and wait and assume the money will turn up in the end. Big businesses are often worst for making payments late - they can pay, they just choose not to or have long internal processes and appear to have no understanding of the impact this can have on smaller suppliers. Unfortunately that means you have the get to the top of their list quickly.

Always make sure you are in the strongest position possible to chase your payments. This includes - never being late sending your invoices out - it gives an impression that speed of payment is not important to you; making sure your invoices are accurate and show your payment terms clearly; giving breakdowns of anything upfront so that is not a reason for payment to be delayed and addressing invoices to the right person (don't risk them sitting in the wrong persons inbox for a week or two).

If you've done all that and payment is still late, don't be reluctant to chase payment. If you have delivered the service or products you should expect to get paid by the due date. Try the following:

· Get on the phone straight away and keep pushing - you need to get to the top of the job list as soon as you can;

· Follow up daily if you have to, even if it feels uncomfortable - you are owed the money so don't feel guilty about it;

· Offer to call in and collect a cheque and agree a time to do so;

· If you're stuck in the world of finance clerks, escalate to your own buyer quickly. Most people will be mortified if a supplier they are happy with hasn't got paid because of company red tape;

· Inform the company that if they don't pay within a certain period (bearing in mind they are already late) that there will be a further invoice owing for interest/admin time;

· If everything else fails use an agency to collect the debt - the cost will be minimal compared to what you could lose.

For small businesses, late payments can be the difference between a comfortable profit or struggling to trade. For bigger businesses, the scale of the money can be huge - if only you stopped to think about it. Whichever one you are in, get chasing - being paid on time for work you do is fundamental to any business.

So, take action NOW - this week, draw up a list of all the overdue payments and chase them.

Want help improving your business results? Click here for a free report - 52 ways to Boost your Profits! Kate Marsden is founder of Ignition Key Ltd and has 20 years business experience working at Director level for a number of well-known organisations. Kate provides businesses with advisory, support, coaching and mentoring services to enable them to step change their performance and restuls. For more information visit

Source: EzineArticles
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