How to get paid straight away
Most businesses function in a give and take fashion - while you may be providing a service, you are most likely always paying someone else to supply a service to you, and so on.
This chain of supply and demand means that you understand the need to pay on time, and therefore, in theory should be given the same courtesy by your suppliers. Unfortunately getting paid on time, every time, is a rare luxury, but with a few simple strategies you can attempt to make it a more regular occurrence.
Start by encouraging credit card sales. Set up automatic deductions wherever possible. This way, you are ensured your payment; no matter what monetary ups and downs your customers may be experiencing. It may sound ruthless, but in order to prevent your own business from suffering at the hands of another's tribulations, one must be proactive and commandeering when it comes to funds.
Offering a small reward or reduction for advance, on time or payments in full can also encourage your customers to stay on top of their finances.
Always insist on a deposit. Whether you are providing a product or a service, tangible or not, a deposit is necessary. Especially if your deliverance is laid over a long time line, and dates could be pushed back or adjusted, you want to rest assured that you have collected at least partial payment in case of delays or last minute pull outs. Obviously payment in full is the ideal here, but when not possible, a deposit ranging from 20-50% is suitable.
Be diligent and creative when it comes to the paperwork. Make sure that a written contract is always in play and that both parties are well aware of their responsibilities, with no grey areas. Do not be afraid to shorten billing cycles and request payment at 14 days, instead of the usual 30; just make sure it is clear. Make sure your invoices read loud and clear the due dates as well as the penalties for late payment.
If and when it comes to it, do not be the proverbial 'rug' and allow yourself to be stepped on. If your situation comes to a standstill and payment still lies on the line, bill collectors and small claims court can help you get what is rightfully yours.
This chain of supply and demand means that you understand the need to pay on time, and therefore, in theory should be given the same courtesy by your suppliers. Unfortunately getting paid on time, every time, is a rare luxury, but with a few simple strategies you can attempt to make it a more regular occurrence.
Start by encouraging credit card sales. Set up automatic deductions wherever possible. This way, you are ensured your payment; no matter what monetary ups and downs your customers may be experiencing. It may sound ruthless, but in order to prevent your own business from suffering at the hands of another's tribulations, one must be proactive and commandeering when it comes to funds.
Offering a small reward or reduction for advance, on time or payments in full can also encourage your customers to stay on top of their finances.
Always insist on a deposit. Whether you are providing a product or a service, tangible or not, a deposit is necessary. Especially if your deliverance is laid over a long time line, and dates could be pushed back or adjusted, you want to rest assured that you have collected at least partial payment in case of delays or last minute pull outs. Obviously payment in full is the ideal here, but when not possible, a deposit ranging from 20-50% is suitable.
Be diligent and creative when it comes to the paperwork. Make sure that a written contract is always in play and that both parties are well aware of their responsibilities, with no grey areas. Do not be afraid to shorten billing cycles and request payment at 14 days, instead of the usual 30; just make sure it is clear. Make sure your invoices read loud and clear the due dates as well as the penalties for late payment.
If and when it comes to it, do not be the proverbial 'rug' and allow yourself to be stepped on. If your situation comes to a standstill and payment still lies on the line, bill collectors and small claims court can help you get what is rightfully yours.