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How to collect money from slow paying customers

If you are doing some sort of business or work for collection department of a corporate firm, you should know the ways to collect your money, specially from the slow paying consumers! It is true that collecting money is not always pleasant. Very important it is to ensure money flowing so that you can stay in the business. Collecting money can sometimes also be tricky. Here are some tips….

1.    At the very beginning of signing any contract, you should make aware the other party of your rules, procedures and regulations about collection money. You should be professional about handling your customers so that they can understand that you are very strict to the rules of collecting money. You should clearly inform them about the due time for paying. You can also review previous profile or background related to their payment.

2.    You can give them instant discount on cash payment. However you should inform customers about your discount plan while signing the contract.

3.    You ought to be fully aware of the contract yourself. Use various types of process to remind the customers about due payment. You can recruit employee to remind them if you don’t have enough time. You should always keep one thing in mind that if you don’t get the payment now, it will surely be difficult at later period.

4.    You should be gentle when you meet them while pressuring them of paying you. Listen to them carefully. Then explain your situation. Just behave in the way that they can understand that you need that money.

5.    Never be rude. If your customer bargains, go strategic. Some consumers will try to show you many excuses. Show that you understand their position but are very strict to your rules.

6.    Make them exchange offer. It works sometimes. It will be better than getting nothing.

7.    You should not be embarrassed in collecting money. This money is yours or the company's that you work for. You have right to ask for your money to your customer. You should remember that you are a businessman and money collection is very important part of business.

8.    If you want to remain in business you must be professional. So be it and teach them some professionalism as well.

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