Having to chase payments and invoices is the biggest hate of many businesses.
Businesses of any size must at some stage in their lives must chase invoices; but is that right? And how can paying invoices increase your sales?
People decide to hold back money for a multitude of reasons:
- Quality of work delivered was not up to scratch.
- Cash-flow issues
- To earn interest on the funds.
Now, the above first two options open up a
whole other can of worms. However, withholding payment to earn some interest on
the money makes no sense to me.
Sure, the 0.05% earned on the £100 you owe may you feel richer; however, is
damaging the relationship you have with your vendor worth the wait?
Of course not.
We know, and I preach about this a lot, that the fundamentals of business all stems from relationships. Your suppliers will more likely give you discounts, or provide a better service, if you develop a good, strong relationship with them. Not only that, they will more than likely refer you to a friend if you pay well.
So why withhold payment?
If you own a business you should be seen as
leading by example, and in doing so and by being a very positive business owner
more people will want to trade with you. So pay your invoices!
Let’s say for arguments sake a café owed me money, or eventually payed after
chasing them for five months; do you think I would want to visit there again?
Do you think I would recommend that establishment to my family and friends?
Of course, there may be times when you simply cannot pay an invoice. However, in this instance honesty is always the best policy! If you cannot pay, or need an extension, be honest, tell the vendor and explain the situation. Normally if you are open and honest people are more than likely to wait.
So, my advice to all businesses and sales people out there is this; pay your invoices on time, and without the need for chasing. In doing so you may get better treatment from your suppliers and you will be more likely to receive recommendations, referrals and repeat business down the line.
Paragon Sales Solutions are Leicester’s leading sales consultants, offering:
– Sales Contracts
– Sales Training
– Social Media Management
– B2B Telesales / Telemarketing
We cater for any size business, and what makes us stand out is that we truly care. Our services can be catered for your business and our sales professionals will work tirelessly to ensure your sales targets are met. Be sure to visit our website for more details on how our sales solutions can help your business.
