The sooner you get paid for your products or services, the sooner you can invest the money. Here are two tips for speeding up the collection of receivables.
Five days before payment is due, call the customer. Ask whether they're happy with the product or service and remind them that payment is due shortly.
"It's an easy way to remind them payment is due," says W. Kelsea Eckert, owner of Eckert Law Firm P.A. in Jacksonville, Florida, and author of Getting Paid In Full (Sourcebooks Inc.). "It works because a happy customer has a harder time ignoring a debt."
Incentives also work well. On your invoice, offer a 2 percent discount if the total is paid within 10 days. Or, for late payments, call and offer a 2 percent discount for immediate payment.