Collections and Finances are of utmost importance for a Business to grow. Success is measured in terms of money.

Q. Are there any problems with your collections?
Q. Are you trying to improve your money collection skills from your customers?

If so, here are some tips on money management skills which can help you:

Do not forget the basics

Make sure there is a written agreement. It should mention the terms and conditions, specific dates on when the payments should be made etc.

Be in contact with your clients. Call them once in two weeks and talk to them about their business, give them ideas. It should be more of a casual talk. In this way, it would be easy to call and ask about the payment.

Take your client’s credit card details with their knowledge, as a backup. It should be a mutual agreement between the two. Inform your clients that, in case the payment has not been received, the card will be charged.

Be polite

Be very polite when dealing with clients. In case of a missing payment, ask for it in this way: “I’m sorry, we cannot find your payment, would you please submit your cheque or credit card payment statement so that we can update our files”.

Never argue with your clients, always be cool and calm. If there is any problem, sort it out as soon as possible. If there is anything you cannot fulfill, please tell the customer in a polite manner. Inform them if you have something better for the client.

Brief your clients about the payment dates and conditions. Warn them beforehand that there would be penalties, if they fail to make the payment. The penalties would increase further, if they ignore.

Share mutual understanding

If it’s a large order, split the order into parts. The order should be shipped after a certain amount of payment is made. Then the next half of the order can be shipped upon, the next part of the payment.

Try to encourage your customers to buy products from you. Offer them discounts, if they can make early payments. This may also lead to new customers.

Don’t be scared of asking clients for payments. Never think, asking for payments will stop the clients from buying products. But do not forget to be polite.

Be friendly but assertive

Talk to your clients as though they are your friends. Don’t try to boss over them. Be kind and gentle to take the talks forward.

Ask them what they need. Fix a plan which is suitable to both. Follow a time frame agreed upon by both the parties. This way, your clients will not miss a payment.

Entrepreneurial Learning

Collections is the basic necessity for any business to persist. One should always try to improve collections. Learn the technique to satisfy your customers and cultivate financial management skills. Be polite and stay in touch with your customers. Before you finalize the deal, work out the payment dates and mode. Prepare written agreements as proof. Give them good deals and discounts to improve collections.

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