When customers don't pay on time, it hurts both your business and your customers.
Just as important as making a deal is getting paid on time. The best way to make sure you get paid on time is to use systematic and consistent credit management practices with all of your customers. By following a few easy tips, you can help your company's cash flow and keep it from having to deal with the pain of late payments.
You don't have to go through it either. Here are a few quick tips on how to pay on time.
Set up reminders via email or text messages. Of course, a reminder doesn't actually pay the bill. This is just to let you know that the deadline is coming up soon.
Use automatic payments. Set up automatic payments to make sure you pay bills on time. When you get that text or email reminder, check the account you're using for the payment to make sure there's enough to cover the payment.
Change your due date. If you get paid at the beginning of the month but your credit card payment is due at the end of the month, move your due date to match your cash flow. Some issuers let you do this online, but if yours doesn't, you can call customer service and ask for it.
Consolidate your debt. When you owe money on more than one credit card, it's easy to get mixed up. Aligning your due dates can sometimes solve this problem. But you could also move your debt to a balance transfer card or get a loan to pay it off all at once. You'll only have to remember one due date, and you may save money on interest.
Keep track of your money. People sometimes don't make payments because they spend more than they have. They don't have enough money to pay the bill when it comes due. You can use a free online tool or an app to keep track of your spending and stick to a budget.