Every once in a while I like to move away from strategic stuff to focus on the mundane. Today’s mundane topic is getting paid.
If you’re in the Web 2.0 World, you either don’t care about getting paid, or you charge a monthly subscription to your premium users. For every other company in the World, however, getting paid is an ongoing challenge. Here are some tips to help you make sure you get paid on time, every time.
It starts before you make the sale
The time to figure out how you’re going to get paid is before you make the sale. This is especially true if you’re selling to big enterprise or government. They all run on big ERP systems and if one "I" isn’t dotted, you’ll run into delays. Ask your champion buyer to help you navigate the process:
- Who is the person in charge of processing your payment?
- Do they have you properly entered as a vendor? Any other documentation required so that the payment can be processed?
- What documentation do you need to deliver at the time of sale so that you comply with their process?
Follow-up
Don’t wait till day 30 (or whenever your invoice is due). Follow-up within 7 - 10 days post-sale on two fronts:
- Is your buyer satisfied? Any issues?
- Do the Accounts Payable / Purchasing
- Is your invoice entered and in the queue?
Remember, it’s your money
The day the receivable is due; you cease becoming a vendor and become a lender. Remember, if the customer hasn’t paid you on time, you’re loaning them your money. Don’t be shy about chasing down the payment. Don’t harass them, call them at home or otherwise be unprofessional. But do follow-up regularly and without hesitation till you get paid.
If you understand and comply with the process up front, and get issues related to customer satisfaction and payment processing out in the open early, you significantly increase your chances of getting paid on time.
Give it a shot…