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Getting clients to pay on time

Sometimes it can be difficult to get clients to pay in a regular, timely manner but it behooves you to determine why before you make assumptions that they aren’t going to pay. There are many issues that go into running a small business, especially a micro business.

One of the most daunting issues is cash flow. Cash flow issues can make or break a micro business. Usually micro businesses do not have the credit to take advantage of when running short or waiting on a payment from a client. What happens when one payment is late, is then you end up paying your own vendors late, and this process just flows down hill.

Some ideas to get your clients to pay on time:

1. Provide incentives – Give discounts for fast, on time payments. This incentive does not have to be money it can be an extra hour of services, or a free article, whatever the incentive make it tangible.

2. Withhold Delivery – This is something you might do with a new client, one who does not have a proven record of paying but it is something you want to think long and hard about when dealing with a repeat client with a record of paying.

3. Communicate with the client – Sometimes payment issues are simply a matter of miss-communication. Email your client with a reminder a few days before payment is due, and again when payment is due, and again on a regular schedule when payment is late.

4. Write clear contracts – This goes back to communication but make sure your contracts are clear in terms of what is expected of both you and your clients.

5. Set up a Payment Plan – With Paypal ™ you can set up subscription payment plans rather easily which will automatically debit the clients account with the payment at a specified time. You can also set up smaller, more frequent payments if this helps.

These steps can go a long way to making sure you get paid on time. If matters get really critical just be honest with your client that you must be paid for your work in a timely manner. If a client does not respect this, then it might be time to move on to different clients.

About Stephanie Watson

Mom | Wife | Virtual Assistant | Content Strategist
Stephanie has been working from home for over 20 years as a virtual assistant, template bender, and content writer. She's currently transitioning to business coach. You can learn more about her at her website http://www.barrypublishing.com.

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