Implement an Effective Payment Process

Give yourself the best chance of getting paid on time by making sure your house is in order. Establish an internal mechanism that will enable you to keep on top of the payment process for each contract so that your client isn’t given an excuse not to pay you.

Know your Client

When you allow clients time to pay, it should be a conscious decision based on knowledge; if you knew a client was about to go bust, it is unlikely that you would allow 30 days credit. Always conduct basic credit checks on potential clients and don’t trade with them unless you are satisfied that they can pay you.

Submit your Applications on Time

To ensure that an application is paid promptly, include as much information as possible in respect of the amount claimed, show your payment terms clearly on the front of the application, and always make sure it is submitted it on time.

Establish a Contact for Queries

The most effective of way of persuading a client to pay is generally a telephone call. Call your contact within the organisation a week before your account is due to be paid to make sure that your payment is in the system – this will give you time to resolve any problems before the payment becomes late.

Pay by BACS

By switching to BACS for making and receiving payments, you can do away with the excuse that 'The cheque is in the post' forever!