If you’ve been running your computer business for any length of time, you’ve probably experienced problems with late payers.
Late payment is a huge problem for small and medium businesses. It can create huge cash flow problems and cause the need to make use of costly credit facilities.
However, if you have customers who always pay your computer business late, looking to remove them from your client list may not be the wisest strategy. Here’s why:
Often the late payers are the larger clients in terms of revenue. Successful companies sometimes develop a sense of arrogance around when they pay their invoices and habitually keep “the little guys” waiting. This doesn’t mean they won’t pay at all.
Some companies actually have a policy of waiting until the first (or even second) reminder before they pay their invoices. If they always pay consistently, however, you’re better off with the revenue than without it.
Late income is (at least some of the time) better than no income.
With all the above in mind, it’s best to consider each late-paying client on an individual basis and ensure that your credit control methods are clear and consistent. Often, the reason clients are paying late is that their clients are, in turn, doing the same thing. This isn’t great for anyone, but it’s the way business works. So while your computer business shouldn’t hesitate to ditch those it thinks may not pay at all, it should perhaps be more cautious about waving goodbye to clients who were always going to pay in the end.
Does your computer business experience problems with late payment? Share your experiences in the Comments box below.
And to follow-through on the tips introduced in this short article, be sure to download your free copy of the special report on How to Start a Computer Consulting Business: 6 Proven Ways to Build Your Initial Client Base.
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Topics:- Computer Consulting Business