In our last blog we discussed policies and procedures for receiving payment on time and what to do when you do not receive payment on time. For the majority of your clients you will get paid regularly and on time.
You can be proactive to make payment to your business as easy as possible. For clients who are having trouble paying on your due date because they are short of cash or they do not get paid at a time that matches with your due dates there are a couple of features that you can offer. First, consider offering payment by debit card and credit card. Of course there is a fee for you to use this feature and you should absolutely pass that fee on to your clients but when cash is short or they forgot to bring a check they can pay easily and quickly by debit or credit card. Talk to your bank or with a credit card processing company for information on how to set up credit card services with your business banking accounts. Another option is to set up an EFT program with your bank in which the client can select the date that their payment comes out of their checking account automatically. Generally, an EFT is done once per month but can be set for as many as twice per month. You can find out how to arrange for this service through your bank or an outside service like your accounting service.
All of these convenience features are designed to make paying your bill as easy as possible. As we mentioned in our last blog, you will have clients who simply cannot pay their bill no matter how easy you make it. When that happens it is important to stop service and give them an opportunity to pay off their debt to you. If they cannot or will not you should file a grievance in small claims court.