Receiving late payments is inevitable in any business; either your clients are difficult or stingy or simply forgetful. Unfortunately it is also possible that your client is actually facing money problems. Such clients are bound to give you trouble, but the question is how do you know for sure? How can you recognise if your client is having cash flow problems?
- Too Many Questions or Frequent Disputes– Do you have clients who always have a lot of questions to ask when they receive the invoice or who make it a habit to challenge the charges in the invoice? Despite all your efforts and receivable management services techniques, they will always have something to say about the invoice. This can be nothing more than a stalling technique.
- Gaps between Bill Payments– Clients with financial problems are likely to pay the first couple of bills promptly. Gradually they begin to take longer periods of time to clear their payments, until eventually they become regular late payers. If you see frequent delays in receiving payments, it is possible that your customer is having financial difficulties, according to receivable management services gurus.
- Repeatedly Claim They Haven’t Received Invoices– If a particular client constantly claims that he hasn’t received the invoice when you are sure you have sent it out, then you should keep an eye on him. This is simply because it is possible that your client is making up excuses and stalling for time.
While these signs are not accurate indicators of whether your customers are facing money problems, they can serve as warning signs according to receivable management services gurus. Repeated incidences should warn you that the particular customer is one to watch out for. Knowing your client and thorough research is the way to keep your business up and running. It would also be wise for you set in place a system so that you can avoid late payments and also a method to handle late payments wisely. The future of your business rests on it.