Alain Guillot

Life, Leadership, and Money Matters

Getting Money Your Business Is Owed

Not all businesses accept only cash on payment. If you accept any form of credit, be they invoices, ongoing bills, or otherwise, you are a creditor. As such, it’s partly your responsibility to make sure that you’re getting paid the money that you’re owed. However, it’s not always as simple as asking for it. You need to put in place a process that ensures the greatest chance of getting what’s yours.

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Be clear with expectations

You shouldn’t get into any credit arrangements where a customer or client will owe you a payment unless you have a contract at the ready. As well as the terms of agreement regarding the service, the contract should also include the terms of payment, which includes any deadlines for payment as well as any late payment fees that get added on top of it. That way, there’s no way for the customer or client to contest what they have agreed to.

Automating the invoicing process

One way to not get paid on time is to slip up on your side of things, as well. If clients and customers don’t get invoiced in time, or they don’t get payment reminders when they should, then it can result in late payments that you have no recourse to collect. Automating some of the payment processes in your business can help you avoid these issues. To make sure everything is running smoothly, you should use CRM software to track which payments are due when, as well as when reminders and late fees are due.

Work with resolution teams

You shouldn’t have to deal with the responsibility of chasing your debtors entirely alone. We’re not just talking about collection agencies, either. It’s in everyone’s best interest to help debtors pay it back in a way that is reasonable and fits their abilities. To that end, teams like Improved Data Services can help with debt management, finding a resolution that suits both parties. You might need to compromise from time to time, but it can help you avoid the costly and time-consuming step of moving into litigation.

Keep a cool head

It’s your livelihood that’s on the line here, so it’s obvious that you might have some strong emotions about people who aren’t paying what they owe. However, even if they don’t agree to a compromise, you should be sure to make sure that you don’t act or say anything in anger, as this can constitute harassment. Similarly, you should make sure you only get in contact as much as you’re allowed to about the debt. If you’re in doubt about your legal rights to pursue debt, consider working with a debt collection team like We Collect It. Otherwise, if you end up breaking the law when chasing debt, you could end up seeing the court side against you, instead.

There are going to be clients and customers who cannot pay when they’re supposed to. Exercising a little leniency while making sure you hold them responsible is the best way to make sure that they don’t become a recurring problem.