Cash Flow for your business
Every good business owner understands the importance of Cash Flow. Your business income is meant to be used for business purposes, such as paying bills or salaries. However, one of the challenges that you begin to see some unfortunate practices that plague the consumer market. You may notice that when your client hasn’t paid for weeks, even months, it will affect the flow of cash. When a client refuses to pay and you need to take them to small claims court, it exacerbates the problem by wasting valuable time and expenses.
Friendly Contact
Hopefully the court issue never happens to you, but you will have customers who take too long to pay for for services rendered. If you get stuck in these situations, you should make contact with the customer. More often than not, the customer simply forgets to issue payment. This can be done with a friendly phone call or a quick stop by their house. A good way to get into a conversation with your client about payment is to ask them if they are happy with the services, then simply mention that their payment is due.
Additional Contact Methods
If you are in the predicament where your client still has not paid for your services, then check how you can preserve your cash flow. Check for any business financing options that you may need to take advantage of. Maybe a letter in the mail or another phone will do the trick.
The Collection Stage
As mentioned above, the cash flow in your business is important. If your client is still ducking your calls and avoiding payment, then you might have to go a collection agency. While not necessarily the best path to take when demanding payment, it is sometimes a necessary one. At this step you may want to seriously consider business financing to keep everything flowing normal.
As you continue to grow your business, hopefully you will be able to avoid the issues laid out above. However, if you are in need of advice with a situation like this, you should contact a professional.