Thursday, 28 August 2008

Pricing, 5

Avoiding Payment Problems

It is necessary to have clear terms and conditions established at the time of purchase. If you have put your terms on your invoice, you can enforce the conditions and take the customer to court.

Always invoice promptly. This is important for your cash flow and reduces the chances of payment problems.

Always keep good records of orders and invoices so you know what is overdue and when to chase for payment. A simple accounting software package will assist.

Maintain good communication and be professional. When you contact someone about an outstanding debt, be polite. However, do not allow them to walk over you. Be firm in your request for payment. Ask them to suggest a time scale for payment – normally people are committed to their own suggestions. But do not accept unreasonably long payment schedules.


More information is available from craftscotland.