It is necessary to avoid debtors in your business in order to grow…
If you run a business, there is a high chance that some of your clients or customers will owe you money for goods or services at some point.
Although this isn’t necessarily bad, it threatens your business when you constantly have to chase after debtors who find excuses not to pay you on time.
Your business does not have to suffer because of recalcitrant debtors, so we have drawn up five easy ways to make your customers pay you on time and avoid debtors.
1) Make payments process easy for your clients and customers
The payment process is a cornerstone of a successful business, and you must treat it as such.
Customers want to avoid adding the headache of an unreliable payment process to their hectic schedules. When they are confident of having a fast and seamless experience with your payment process, your clients or customers will be inclined to pay more quickly.
So you must make it a duty to provide smooth and efficient payment options tailored to their preference.
For instance, using Bani’s virtual accounts or flexible payment links is one reliable way to allow your clients to enjoy easy and instant payments. You can utilise our unique virtual accounts for easy and quick bank transfers or quickly generate payment links to send to your customers via Whatsapp, SMS, email or any other channel of choice.
2) Make your findings on the client or customer
Some clients and customers have a notorious history of defaulting on payments, so research those seeking to pay you later.
Besides confirming if they have a terrible reputation dealing with other business owners, your research can include their verified details and contact location.
3) Draw up and sign a contract
For clients promising to pay later, make sure you draw up a legal contract for them to sign.
The contract must include the goods or services to be provided, the amount to be paid, and the payment terms over a specific period. To make the client pay quicker, you can specify that late payment would attract extra charges and clearly state the penalty amount.
By doing this, the client would understand they are legally bound to pay within a specific time to avoid legal action against them.
4) Insist on partial upfront payments
You can also insist on receiving a part of your payment upfront for larger goods or services. This will allow you to give your clients enough time to pay your balance. And you’ll also reduce your loss if they default on paying on time.
5) Stop selling on credit to avoid debtors
To avoid always seeking strategies to collect payments from debtors, you can let your clients and customers know you will not sell your goods or services without collecting total payments.
Although this might be difficult to apply to all your clients and customers depending on the nature of your business, you can simply identify the unrepentant debtors and stop rendering credit sales or services to them.
Remember, allowing clients or customers to get away with constant debts can kill your business. You must protect yourself and your business from such customers by prioritising payment methods that allow you to collect payments quickly and efficiently. Or simply lay down strict laws on your payment collection strategy for your clients to abide by.
If you want to avoid the headache of always collecting payments from debtors, check out Bani to enjoy easy, fast and reliable payment collection processes such as our unique virtual accounts and dynamic payment links. Or immediately reach out to our sales team for help.