How many of you aren’t getting paid on time and the cost of collection is eating into your profits?

Consider this:

• Does your Credit Policy and/or billing structure allow you to charge late payment penalties?
• Are you worried that you will lose a Customer if you charge a penalty?
• Can you afford to continually allow late payment, or worse no payment at all?
• What is the cost to your business of not being paid on time

Now consider this:

• If you have no policy on how you deal with late payments, there is no incentive to pay on time
• You can choose if, and when you charge a penalty
• Most Customers will abide by rules and expectations if they are known from the start.
• Change your invoices and statements to allow for a default fee to be charged for any late payment.
• Incorporate late payment fees/interest charges etc into your Terms and Conditions.
• Any default fee/interest charge should be high enough to encourage the Customer to pay on time.
• The rate should be equal to or above the average rate of funding for your business. Eg: 2% above your banks current overdraft rate.

When a due date is passed, there is an expectation that penalties will be incurred but many businesses don’t incorporate this into their collection strategy for fear of harming the business relationship.

Companies who clearly define their collection strategy and payment expectation increase their credibility with their Customers. Remember – we are all in the same boat and we deserve to be paid on time.

The advantages of such action:

• Your Customers know your expectations up front
• You are compensated for the cost of collection
• You develop more credibility with your Customers
• You will get paid quicker

If all else fails, call the experts. We are here to help and enhance your business.