By k | April 25, 2013 - 6:00 am - Posted in Sales

I’ve worked collections
for other companies.
It isn’t a fun job.

Working collections for our own companies
is even more challenging.
We’re worried about
upsetting and losing
these late paying customers.

Erika Napoletano
talks about how she solved
her collections challenge.

“Some clients will
never (ever) pay on time.
Knowing this,
I was faced with two choices:
get rid of the slow paying ones
or make it worth my while
for them to pay in their own sweet time.

Given that I truly love working
with all my clients
(I’d already long ago purged
the ones who were more headache
and less awesome),
I established early pay discounts
and late payment penalties.
Now I’m offering a reward
for those slow-to-pay clients
that step to the plate and pay early.
I’m also getting paid for waiting
when they go beyond
our agreed upon payment terms.
Either way, I get paid.
And now I’m getting paid early
more often than not.”

If you have a collections challenge,
consider early payment incentives.

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