If you’ve been dealing with business credit defaulters, you may have got an idea about the tiring payment settlement process. Not only do you have to visit the client or make courtesy calls, but you also have to take the help of credit information bureaus to help you out. And if your debtor still makes excuses, it’s tricky to recover payment.
With all that said, it’s better to know a few credit management techniques that can help you settle payments with a lazy client. Read on to learn more about it.
1.Know your customer
It’s good to know your customer’s profile. Also, you should know about their payment habits. Review their business credit report to make an idea about their financial status. If you have been dealing with a lazy client, you don’t want to repeat the mistake. It is better to fasten up the payment settlement process as you already know about the client.
2. Be professional
We understand you may get frustrated dealing with a debtor. It’s frustrating for every business owner. However, it does not mean that you would cross the limit and end up making mistakes. Instead, you can conduct yourself professionally and be known for your kind behavior. Even if the client is making excuses for delaying payment, you can offer lenient payment terms or find a solution viable for both parties.
Adding to the previous point, you must show courtesy when dealing with a difficult client. However deep could be the argument, you can always leave the table like a gentleman. It makes an impression, and your client may be ready to renegotiate the payment terms. With that said, know where to draw the line. Being courteous does not mean that you can be mistaken for a weak businessman.
4.Take strict action against your debtors
If you think you’ve played all your cards and you’re not seeing any chance of settling payments with a difficult client, it’s time to take strict actions. You can either stop working with the client or share a deadline to make the payment. It can expedite the payment settlement process.
You must take advantage of the internet to get your money back. Send invoices to your clients and then send alerts and reminders. This recall will make the client look into the matter seriously.
Email the last payment records and invoices. Make sure you have organized everything: it becomes easy to handle a dispute or argument better.
6.Accept digital payments
If you only rely on bank transfers, you may be giving your lazy clients a chance to delay payments. You may hear weird reasons and remain unsatisfied. You can go with digital payments as your prime purpose is to get the money back, regardless of the payment mode.
7.Say no to free work
If you work with clients on a credit basis and your clients have got a habit of getting things done in advance, you should avoid this habit. Say a big no to free work. Stop working with a client until you receive your payment. It’s a wise way to let your client remind you that money is a necessity.
8.Ask for advance if possible
If you had a bad experience dealing with business credit defaulters in the past, you can learn from it and avoid such mistakes in the future. If you are entering into a new partnership, make sure you put forth your point of getting advance payments. It can save you from the hassle of running after the payment defaulters.
9.Approach a credit bureau
If you think you’ve reached your limit and you can’t take any more excuses from your client, it’s better to approach the CreditQ team. We help MSMEs and businessmen recover their stuck money from their business credit defaulters.
We follow a standard payment settlement process that can help you get your stuck money back in no time.
10. Be patient
With all that said above, the crux is to do the right thing and have patience. Be consistent in your effort to recover bad debts and find ways to make more money. Learn credit management techniques and use them to your advantage.
Your prime focus is to recover the money without trouble. You can brainstorm and think of more ways to smoothen the payment settlement process.