Unpaid invoices are the root cause of business bankruptcies. Here are 10 reflexes to adopt to avoid falling into this trap. Get an idea of the reputation of your customers before formalizing the relationship with your customers , start by gathering information about them. Word of mouth works perfectly, since in the entrepreneurial universe, nothing is hidden. Ask your colleagues and your professional entourage if these companies pay their employees or if, on the contrary, they often do not. find out about the financial strength of your clients on the internet, many sites provide information on the economic situation of companies.
You Will Find Feedback on
The reliability of companies registered in the trade and companies register (rcs). look especially at the state of indebtedness of the company with which you intend to work. Require a deposit to minimize the impact of chargebacks on your business, ask your customers to pay you a 30% deposit. This requirement Paper Products Manufacturers Email List should be clear in your terms of sale. If this deposit is a check, check the status of your client’s account before you begin your work. Empower your employees you must train your employees well and make them understand that unpaid invoices affect their commissions. More so, unpaid invoices cause the company’s turnover to plummet and can lead to indebtedness.
The Salesperson Must Then Refuse
Any new collaboration with a customer until the latter decides to pay the previous invoices. Itemize your bills prefer detailed invoices with a due date and a precise indication of the penalty rate in the event of late payment. Also wait for the end of the service before presenting Asia Email List the invoices to the customers. Require a first payment think first of an amicable solution for unpaid invoices. By using a schedule, you avoid litigation that is harmful both to the client and to you. you can then agree on a first payment of debt: a proof of good faith that you must however formalize by a written document. Remember that both parties must sign this contract.