Aussie Web Directory

May 25, 2010

Rule One of Business: Get Paid

Filed under: Interesting — Tags: , , , — Bradley Fraser @ 8:18 am

To be paid, just like you would figure is essentially important to your business because if you do not get paid, what’s the point in business?

You may be surprised at the heaps of business people who only have their clientele to pay them when and if they get around to it. I am acquainted with one business owner who always holds bad debts like awards. Why, do you think? Just because he doesn’t bring himself to request the cash and people use him.

If you let someone credit, only do it after they have proven their worth to you by paying cash on delivery (COD) for some time. Secondly, you should see whether they have the cash to pay you - if not why do business with them. Don’t kid yourself into thinking “I need the work” or “I need the sales”. It’s ultimately in doing the work or providing the goods for free if you do not get paid.

If you are the type of person who can’t demand the cash when the service has been completed, try these ideas:
Tell your customer that when all the work is finished, you need cash or cheque. They should more than likely have it ready at the point of sale and you don’t need to ask for your pay.

When you hand out a quote, make sure your payment terms are simple.

Create an invoice that has the terms of payment evidently printed and hand the customer the invoice when the job is done. They will look at the invoice and reactively know they can pay the money now without you needing to say a thing. Create a “nasty boss” who would skin you alive if you can’t go back with the payment for the work.

Ask your banking to set you up with Merchant facilities so you can have credit cards such as Mastercard and Visa. The large part of people possess credit cards and it will fix the problem of the customer not operating a cheque account or not having the right amount of cash in their pocket.

As another option, don’t be frightened to keep hold on the goods till you’ve been paid. Don’t forget, until the goods are paid for, they remain yours.

If you choose to let somebody credit, make sure you have taken the following details off them at a time BEFORE you let them credit.

  • Name
  • Address
  • Phone number
  • Bank name and address
  • Account no.
  • 3 trade references with their names, addresses and phone numbers

When you possess all this detail, contact the branch and make for sure that they use an account at there. Then, contact all of the trade reference and ask if they pay their fees consistently or if there are any problems with them.

Most people will be willing to tell you if the person is troublesome. If everything is OK, allow them a moderate level of debt, say no more than $500 (depending on your business). Monitor the operation of the account for a few months before allowing this amount to be exceeded.

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