Businesses rely on getting paid to make ends meet. When clients choose a service and consume it, they must provide value of their own. It is, after all, a trade. Without it, the wheels of the economy would grind to a halt.
Sometimes, though, the worst can happen, and clients don’t pay. In B2B businesses, it could be because the vendor went into receivership. On the consumer side, it could be that the customer simply can’t afford to pay the bills.
Whatever it is, these situations make it hard to know what to do. Clients who skip payments are a real problem, especially for cash flow.
Fortunately, there are ways to respond as a business. Here are some of your options.
Send Payment Reminders
Sending payment reminders might sound a little old school. But telling clients that they have to pay for your services can make them think twice about actually consuming them. If they know they’re going to have trouble footing the bill, they might decide not to buy from you in the first place. While that might sound like an adverse outcome, it is better than rendering services and not getting paid.
Use Skip Tracing Batch Services
What is batch skip tracing? Essentially, batch skip tracing is a form of tracking you can use if clients continue to evade making payments long term.
Skip tracing software uses sophisticated algorithms to bring data points together to deduce the likely location of a non-paying client. Skip tracing batch services then interpret these data to help legal professionals figure out where somebody is so that they can be subject to some pre-existing contract terms.
Property managers often use skip tracing services. Real estate batch skip tracing, for instance, helps you stay in touch with clients, even if they decide to skip town. Remember, people will often try to outrun their debts.
Establish Personal Connections
Research shows that people are more likely to pay you on time if they know you personally. It is easy to skip paying bills when you don’t know the affected party. But when clients become involved with you, they begin to empathize with you more, making it increasingly likely that they will pay you.
Spend as much time with your clients as possible to develop rapport. If you can get on their side, they will be much more likely to feel guilty for failing to hand over the money they owe you. Plus, they will be more likely to make sacrifices elsewhere in your lives to ensure you get the money they owe you.
Add Incentives For Quick Payments
Ultimately, you’d prefer to avoid taking legal action against your clients. Unfortunately, in many businesses, the seller has to render services first before the buyer pays. That’s the traditional setup.
You can, however, hedge your risks by offering your clients payment options. They can either pay upfront and get a discount. Or they can pay the full price over time. It’s their choice. Many customers would prefer to pay upfront to get a better deal. And thus, they pay you immediately.