60-Second Guide to Collecting Payment

Collecting on overdue accounts can be a frustrating experience for a small business owner, particularly during the start-up period when every dollar of revenue counts toward staying solvent and repaying

In just 60-seconds, we?ll show you how to establish a sound and rational policy for collecting payments.

0:60 Do What You Can to Prevent Late Payments
Establish a standard policy for payment and make your customers aware of them before starting work. Some types of businesses may require all or a portion of the payment up front, while others allow terms such as payment within 30 days after receipt of invoice (i.e., Net 30). Your invoices should also clearly state any surcharges for late payments.

0:49 Be Careful with Credit
If you provide goods or services on credit, develop qualification standards that are specific, yet fair (e.g., a good credit history from a credit bureau or good bank references). Put your credit policy in writing and make sure all employees understand it. You should also have the policy posted in your store, or available as a handout.