Crane Data Logger


Rule One of Business: Get Paid

Getting paid, just as you would imagine is fundamentally important at your business because if you aren’t getting paid, what are you doing in business?

You will be astounded at the number of business people who have their clientele to pay them when and if they get on with it. I am acquainted with such a tradesman who persistently collects bad debts like weeds. How is that? Simply because he cannot bring himself to ask for the money and allows people to use him.

If you allow somebody credit, do so only if they have cleared their integrity to you by paying cash on delivery (COD) for some period of time. Secondly, you need to see whether they have the funds to pay you - if not you should not do business with them. Don’t kid yourself into the line of “I need the work” or “I need the sales”. It’s damaging in doing the service or providing the goods for nada if you do not get paid.

If you are the sort of person who can’t request the payment even after the job has been completed, try these ideas:
Tell your client that when all the work is completed, you will require cash or cheque. They should more than likely have it on them at completion and you do not need to request your fee.

When you give out an initial quote, make sure your payment terms are evident.

Form an invoice including your terms of payment simply printed and hand the customer the invoice when the job is completed. They should see the invoice and generally understand they should pay it off now without you having to say a thing. Make up a “nasty boss” who might skin you alive if you do not go back with the payment for the job.

Organise your branch to provide you with Merchant facilities so you can take credit cards for example Mastercard and Visa. Most people utilize credit cards and it should stop the dilemma of the client not holding a cheque book or not having the cash in their wallet.

Likewise, don’t be persuaded against to hand over any goods til after payment is paid. Remember, until the goods are paid for, they remain to be yours.

If you decide to allow somebody credit, make sure you take the following information of them at a time PREVIOUSLY you allow them credit.

  • Name
  • Address
  • Phone number
  • Bank name and address
  • Account no.
  • 3 trade references with their names, addresses and phone numbers

After you record all this detail, call the bank and make for sure that they operate an account there. Then, phone every trade reference and ask if they pay their bills on time or if they have had any dilemmas with them.

Most people will be willing to tell you if the person is troublesome. If everything is OK, allow them a moderate level of debt, say no more than $500 (depending on your business). Monitor the operation of the account for a few months before allowing this amount to be exceeded.

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