Are you looking for information on trades getting paid on time? Are you a trade worker or consistently find yourself getting paid late or sometimes even not at all?
If so, you are likely feeling very frustrated and don’t really know what you are doing wrong for this to keep on happening. Don’t blame yourself!
People tend to avoid payments to creditors, especially in certain circumstances.
Although it shouldn’t be your responsibility to get someone to pay after they agreed to do so prior, you may want to make slight adjustments to your business to decrease late payments.
There are steps that you can take to cut down on the number of late payments being made that can be highly effective for your business and not take too much effort going forward.
In this article our debt collection agents will discuss 5 ways to adjust your business to avoid late payments and how these tips and tricks can change your debt collection habits for the better.
Trades Getting Paid on Time - Establish Clear Contracts
One way that you can decrease the number of late payments as a trade is by establishing a clear contract that you consistently use.
Contracting is a vital part of the debt. Without them, clients can simply not make payments and you may not have any evidence that you did any work for this individual or that they owed you money for said work.
If you own your own business or do private work for people, make sure you establish a contract that will ensure the clients know what they have to do and what they are paying you for.
This can clear up a lot of confusion and benefit your business greatly in the long run.
For starters, having a clearly established contract that clients can refer back to if they forget details or need to double-check something can prevent repetitive phone calls and questions.
Furthermore, a contract acts as both evidence and a reminder for you that your clients must pay you for the service you did for them.
Trades Getting Paid on Time - Know Your Clients
Another way to cut down the number of missed or late payments as someone in the building, construction, and trade industry is to take the time to know your clients.
Why would I bother with this, you may ask? This is a fair question. After all, after you undergo the work, your client is paying you for and they make their payments, you will likely not see each other again, right?
This is not necessarily true and even if it was, it still pays to know your clients.
Taking some time to research your future clients can help you to make sure they do not have any significant money troubles and will be able, as far as you can know, to pay you back.
You may wish to purchase a credit report about your client, especially if they are a business also.
A credit report can reveal a lot about the past money management and payment habits of future clients and can reveal some significant issues, either past or present, that they may have.
Trades Getting Paid on Time - Use a Payment Plan
Another way that you can go about reducing the number of late payers in your business as a trade is to set up a payment plan with clients.
A payment plan is a simple, straightforward way to allow a mutual agreement on the terms of the payment. You should undergo this process prior to the undertaking of the service you will be providing this customer with.
When you obtain a new customer in your business, request a sit down with them to chat about the terms of the agreement, in which a contract can be established and signed.
This will also allow a negotiation to take place where a client can discuss all of their concerns regarding payments and you can address them there, rather than discovering them later when the service has already taken place.
Furthermore, if a client has agreed to a payment plan, this can be used as evidence against them if they do not pay.
Trades Getting Paid on Time - Penalise Late Payers
Another way that your trade business can decrease the number of clients paying late is to penalise those that do just that, pay late.
This one may seem a little obvious, but it can be overlooked by businesses. Those who work as a trade have a stereotype of being quite relaxed and laid back.
Clients may take advantage of that and assume that you won’t mind if they pay a little late.
This belief can be damaging to your business, and you should take action to ensure that clients do not think this.
When you are originally discussing your agreement with the customer, let them know that late payments will result in a penalty, such as a late fee or default interest. If they do pay late, especially if they don’t have a reason to have done so, don’t go back on your work.
Charge them the late fee on top of their payment!
Communicate with your Clients
Another way that you can prevent late payments as a trade is by proactively communicating with your clients.
Client communication is key to creating and maintaining a successful business. Not only does it remind them of their debts but shows that you are not willing to let go of the payment.
Also, being friendly and understanding while speaking with clients can benefit you in various ways.
It can prevent late payments as the clients may be more willing to pay if you are kind to them. It can also help with your business reputation.
Sending consistent but polite reminders to clients can drastically cut down the number of late payments your business receives.
Consider Debt Collection
Have you tried everything to get your clients to pay on time to no avail?
If so, it may be time to hire a debt collector to handle this matter for you. A debt collection agency is a professional in the industry of debt recovery.
This means that they will likely have the tools and experience to collect your debt with efficiency and a higher success rate.
Furthermore, debt collectors can locate missing clients using skip tracing and help you to discover new services and strategies to strengthen your collection process in the future.
So, what are you waiting for? Hire a debt collector today; stop waiting for payments.
Advance debt collection is an Australia-wide commercial debt collection agency and credit and accounts receivable management. We can recovery your debts, conduct skip tracing, and manage your accounts receivable. We collect your debts for commission only. This means no collection, no commission. We are professional debt collectors with combined 20 years of experience to help you collect your debts. We are partnered with expert litigation lawyers with years of experience in debt recovery, enforcement, and insolvency. Under the Agents Financial Administration Act 2014 Advance Debt Collection Pty Ltd hold authority number 4583821 to act as a debt collector. ADC Advance Debt Collection® is a registered trademark.