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How To Encourage Prompt Payment Of Bills

Business : Invoicing And Managing Finances

If you have someone who is bad at paying, but you value their business, then here is one simple tip to get them to pay up on time.

Offer them a small financial incentive to pay on time.

For instance if you say "3% discount if paid within 14 days" then you aren't losing much yourself but are incentivising them to pay on time and get something back.

Companies usually think 'what's in it for me' when it comes to paying bills, and delaying paying is a trick many use to keep cash in their bank accounts for as long as possible.

Offering them a small reduction like 3% means they are better off financially paying straight away and getting 3% of their bill then leaving the money in their bank account a month or so extra and getting much less in interest.

By: Job Expert

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