It can be difficult to chase clients for payment at the best of times, but with the festive season upon us, more obstacles can be put in your way. However, you shouldn’t let these obstacles impact your business.
At Commercial Domestic Investigations, we wanted to share a few tips to make sure that your client pays you this year, not next.
Find out which clients end their financial year on December 31st. You may not know, but some businesses have a financial year that runs from January to December. This is important for you to know because these businesses may put off paying invoices until January so that their end of year cash position looks better.
Identify the relevant clients and contact them to ensure that they have received your invoice and confirm the payment date. This will remind your client that you are expecting a payment this year and means that they should prioritise your invoice.
Most businesses will have a period where they close over Christmas and New Year. It is important that you check when they will be closed so that you know you are unable to contact them. As Christmas falls on the weekend this year, some businesses may operate with a skeleton staff in the week before and after Christmas, meaning that your contact may not be there when you need them. Find out if the client has a final date for payment runs, if applicable or a final date for invoices to be received. Make it clear to your client that you expect the payment to be made within terms, and if that means this month then the client needs to plan for this.
There can be a lot of excuses for late payment and the most common excuse over the Christmas period is “the cheque must be lost in the post”. A lot of smaller businesses may still accept cheques as an acceptable form of payment but they can cause huge problems with cashflow, they can bounce or may get lost in the post. Try and persuade you customers to move to standing order or pay by BACS to avoid this issue.
If you want to start 2017 with a positive outlook on your cashflow and your credit control, contact Commercial Domestic Investigations. We discuss your businesses requirements and can assist with all your credit control needs. Contact us on 08444 159200 or email firstname.lastname@example.org.