Chasing Slow Payers into the New Year? Here Are Some Tips To Get Paid Faster

Waiting for clients to pay or for debtors to settle their accounts can be frustrating. For small businesses that need to pay salaries, cover expenses and buy new supplies, these situations can even be nerve-racking. Slow payers are an unpleasant reality that many businesses face, and these types of clients can be especially damaging to any small company trying to survive in Melbourne’s bustling economy. 

If you are constantly waiting for payments or if the debtor payments seem to be drying up, then it is time to escalate your attempts and improve your methods. Here are some good tips to help you get paid faster. 

How Slow Payers Can Hurt Your Small Business

You might think that your company is being understanding or lenient when you allow debtors to skip repayments or when you give a lot of grace to slow payers. But this can hurt your company a lot. Slow payers become used to your lenience and will soon start taking advantage of it. Delaying payments will become a normalcy to them, which can start affecting your business a lot in the long run.

When capital doesn’t come in, many business functions will need to be placed on hold. You might need to hold off on buying supplies or inventory, which can affect future sales or income. Employee salaries can be delayed, which will have a huge impact on employee morale and can also affect the way employees treat customers. Delayed payments will also hinder your ability to grow, expand or buy new equipment. 

Slow payers can do a lot of harm to small companies, and it is always best to start addressing these issues before your business starts experiencing financial stress. 

4 Tips for Urging Slow Payers to Commit Earlier

There are lots of effective methods that can urge slow payers to settle their accounts on time. Here are some of the best tips:

01. Instant Invoicing 

Don’t delay your invoices. Invoices should be sent out immediately after making a sale or delivering a service. Account statements should also be sent out every month if you have debtors.

02. Be Clear With Payment Terms

Without specific payment terms, your slow payers will get the impression that they can repay your company at their own pace. You should be upfront about payment terms while making a sale and on your invoices.

03. Offer Incentives 

You can encourage faster payoffs by offering discounts for early payments or discounts for quicker account settlements.

04. Make it Easier for Debtors

Offer multiple payment methods so clients can pay with ease. You can even look into more comfortable down payment rates to accommodate those who struggle. 

The Best Strategy for Late Payers

Chasing slow payers is a lot of hard work, and these processes are very time-consuming. If you are having a tough time keeping up with the administrative tasks or if you are dealing with a lot of late payers, then it is best to start partnering with a debt collection agency. 

Debt collectors can take full control of all of your slow payers and debtors. They will perform all of the necessary duties to encourage debtors to pay up. This includes sending out invoices, making calls, sending emails, and keeping track of overdue accounts. With debt collectors, your chances of recovering payments are much higher, and you will save a lot of time and effort. 

Get Professional Help Chasing and Recovering Debt From Slow Payers

If slow payers are starting to affect your company, then it is time to reach out and get professional help. At Vic Collect, we offer debt collection services and are happy to assist with any slow payers. Our collection strategies are highly effective, and, through professional actions, we help retain a positive relationship between debtor and creditor so you can eliminate the risk of losing your valuable clients.

Contact Vic Collect now and turn all of your slow payers into diligent payers.