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5 Tips for Chasing Slow to Pay Customers for an Online Business

Cashflow is king in any business, and with so many of us making our living online these days the number of self-employed and business owners is on the rise. As such, it’s vital to the survival of your firm, no matter how large or small it is. One of the most important things to be on top of is ensuring that customers pay their bills promptly. This can be especially tricky when operating in an online environment as you are not in physical contact with your customers. Here we are going to offer five tips to aid when chasing slow to pay customers in your online business. 

Double Check the Bill is Outstanding

This is an obvious one, but it’s easy to sometimes overlook that a bill has been settled. Be sure that you keep up to date with your book-keeping and mark any payments against the customers account to avoid embarrassing errors.

Check the Terms & Conditions of Sale

You will have written up the terms and conditions of sale document when you started the business, and sometimes it’s easy to forget what the details of them are. The one most important aspect would be the payment terms, it may state they have 28 days to pay, for example. So it’s important not to chase them for payment before this date. 

Allow as Many Payment Options as Possible

On the invoice, you should list all the accepted payment types and include a description of how to make them. Links to online payment systems, phone numbers for making card payments, and a mailing address for checks. You could even consider alternative payment methods such as cryptocurrencies, you can easily check the current Bitcoin price in USD to be able to bill in that currency.

Give Adequate Reminders

Often when a customer has not made a payment, it could be a genuine oversight. They have busy lives and businesses themselves, and it’s easy to overlook a bill. Therefore, a simple reminder of an unpaid bill may be all it takes to prompt a customer into settling.

Stop Future Orders

If you are dealing with a customer who places repeat orders, then if payments reach a certain level. You will need to consider the possibility of temporarily halting supply until payment is received. Deciding to take this action is a very subjective process, and if they are a loyal customer, you won’t want to lose their business. Always try to talk to your customer before taking this kind of action and come to some arrangement to keep the future relationship on good terms.

Legal Action

Legal action is always your last resort, and nobody desires this to be the outcome, but sometimes you are left with little other option. Often just the threat of action prompts payment. Before taking this decision, it’s important to calculate how much the action will cost and is it worth pursuing, or is it more prudent to write the debt off?

This article has been contributed on behalf of Paxful. However, the information provided herein is not and is not intended to be, investment, financial, or other advice.

Cher

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