Daily Mirror

HOW DO I GET CUSTOMERS TO PAY ME ON TIME?

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Dear Biz

I’m doing OK with my business but I’m struggling to get customers to pay me on time and this is affecting my cash flow. Do you have any tips on how I can encourage them to speed up payments? Brian, by email

Biz replies

This is a problem for lots of small businesses.

Ways to tackle this include ensuring you set out payment terms clearly in advance – including details of your invoicing process, refund and exchange policies, and payment terms.

Think about offering rewards for good behaviour, such as a discount for making an early payment, or maybe a rewards scheme (which could also encourage more business).

Chase up late payments promptly with reminders by post and telephone.

Offer as many payment options as you can from cash to cheques to bank transfers, and think about imposing penalty fees on persistent late payers.

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