• Kornum Conner posted an update 4 months, 1 week ago

    In almost any business undertaking, an owner may encounter multiple sweaty-palmed experiences. Customers may take part in multi-tiered assaults which range from vehement criticism of a product or service, censure for (the lack of) customer support, objection to time lag for delivering said service or product along with the broadcasting of other grievances. Obviously, an owner realizes that this comes with the precipitous territory of conducting business. However, it remains a humbling experience when interacting with a vociferous customer — a person who will let everyone know from relatives and friends to the Better Business Bureau concerning the perceived shortcomings of the business.

    Possibly the most daunting problem affecting an "it is not all what it’s cracked up to be" business owner is a payment that is late or never arrives. Consider the private school owner who reminds a parent concerning the monthly fee simply to receive this answer: "Just give me a couple more days." Think about a construction firm owner who seeks a periodic payment from the customer and is dismissed with "I will pay you when I could." Envision a gym owner who may need to perform back flips only to collect on that monthly payment.

    Whether intentionally or even necessity, there seems to exist a bandwagon of customers who might not so readily depart with their money irrespective of their obligation or what’s morally perfect. This lamentable circumstance (i.e., once an operator cannot effectively collect money that is due) seriously hampers cash flow — a company’ lifeline, crucial for its energy. When company expenditures outpace revenues (negatively affected by late or non-payments), commercial failure is all but guaranteed.

    There exists two key ways in dealing with an undesirable customer whose money remains elusive. Many companies still adopt the collections process — if they perform this task in-house or contract with outside agencies. If the company opts to contact the customer directly, invoice after bill may be forwarded which is very labor-intensive and costly. An owner should think about the expense of invoices, postage, late notices and set calls, and the time that it takes personnel to meet this obligation (and the concomitant cover / benefits such personnel are accruing). Outside

    save money aren’t necessarily an advantageous option. They generally maintain at least 25 percent of an owner’s deserved gain.

    The next way of managing the money flow-challenging customer is based on the assumption that a company owner must be proactive. He/she should realize the advantages of automatic payments, and how this process could more readily prevent the "Dear client, please pay me" letter.

    Automated payments are a car where a customer’s account is automatically debited and transferred to an owner’s account on the exact date that a payment is due. Upon the decision to purchase a product or utilize a service, a prospective customer signals a simple release form, giving permission to transfer payment on a specific due date. The client selects how to pay, most notably with checks or credit cards.

    One alternative is via paper drafts which might be issued via appropriate software and delivered to the owner so he/she can deposit them (as if they were paper checks) or sent directly to the owner’ bank. The processing provider acquires the clients’ banking info and converts the information to the proper bank draft.