Until you get paid, contracts are just promissory notes. You deliver the product or do the work based on a promise of payment.
Your customer likely expects to pay you. Use these 3 tips to help them keep their part of the deal:
Don’t extend credit to new customers without an assessment:
If an order will have a large impact on your bottom line, run a credit check before signing a contract, and seek a down payment, even if the credit status is acceptable. Partial payments ease customer cash flow and reduce your liability.
Send invoices promptly & make your payment expectations clear at the beginning:
The sooner your invoice is in the mail, the sooner you get paid;
Specify payment terms in your proposal & negotiate them together with your quoted price;
Include your agreed payment terms and due dates in your purchase Agreement and require that your customer sign the written Agreement.
Make it easy for customers to pay you:
Keep your promise! Deliver what was promised and confirm this with the customer without mentioning payment due;
When applicable, propose partial payments. They get the customer’s skin in the game and ensure that you receive some compensation should the […]