Tuesday, September 16, 2014

Brookstone Builders, Inc.- Tips on how to get paid on time

Money, Money, Money!   We all want to get paid for the services and or products we provide, yet sometimes it seems impossible to get paid by certain customers. 

Here are a few tips on how to make collections a little bit easier;

1) Outline your payment process clearly before you do any business. Explain your terms and how to submit payment.  Have the customer sign and everyone gets a copy.

2) Extend terms only to customers you know and have had positive payment experiences with. Typically net 30 or 60 is the standard. Customers you know, and have worked with many times before, and are in good standing, may be a candidate for net 90. 

3) Do your homework.  Do not skip credit checks.  This is important, in the end the time spent on doing this will pay off.

4) Always, confirm in writing by signature that your customer has received the product or service.  Keep copies.

5) Submit invoices according to the procedure outlined, be clear and again, keep copies.

6) Be watchful of aging invoices.  You need to keep track of your payment terms, keep your records current. You may have to send payment reminders to certain customers. 

7) Handle disputes as quickly and as professionally as possible.  They will happen and when they do be ready to pull out your copies with signatures and dates. 

8) Handle payment carefully.  When payment is received, it is best to stamp with a received date and make copies.  Attach copy of the payment to the invoice and file properly.

In summary whatever, your system, keep organized

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