Business Training

14 SMART TIPS OF COLLECTING PAYMENTS

Businessmen often face a challenge of collecting payments from the buyers. In this video Mr Anurag Aggarwal gives a few ways how you may collect your payments.

Business Challenges

  1. Give credit as less as possible (एक shop पर लिखा दिखा दो .. आज नक़द कल उधार)
  2. Take advance if possible ((एक shop पर लिखा दिखा दो .. पहले पैसे माल बाद में)

The above mentioned points would depend on the kind of business you have. If your business is such that you have to give credit by all means then you cannot escape from it but if this is not the case then avoid giving credit.

14 smart tips for collecting payments from customers

  1. Discuss payment terms beforehand (0:51 min). You are afraid that if you would be firm with your terms and conditions, you may not get any orders but you should not be shy in telling these terms.
  • Don’t shy.
  • May not get order
  • Be firm.
  • Have confidence.
  • Customer may take advantage if terms are not clear.
  • Tell your terms & conditions.

If terms are not clear, you may face following issues:

  • Waste of time
  • Calling
  • Visits
  • Funds shortage
  1. Choose the best paymaster (from 1:48 min). Do not deal with the people who are in a habit of delaying the payment. There are such collecting agencies that give you the report of people who are punctual at making payments. Collect reports from them and deal with those people only.
  • Credit collecting agencies
  • Make report from same trade.

 Watch full video (in Hindi) here.

  1. Send invoices right away (from 2:55 min). If you would send your invoice after 30-40 days, then the payment will surely be delayed. So, in order to receive the payment on time, send the invoice immediately after the sales.
  2. Fix a credit limit (from 3:20 min). Analyse the person right in the beginning and then set the credit limit for him.
  • Fix an amount: 1L./ 5L./ 10L./ 50L./ 1Cr etc.
  • Minimum 5 transactions should be done before you increase the credit limit.
  • Judge his behaviour & Nature in these 5 transactions.
  1. Give Periodical Reminders & Strong Follow Up System (from 3:58 min). If you adopt this system in your business, you are surely going to get a better response. Give reminders for payment right after the sale and following up till you receive the payment.
  • Reminders from beginning.
  • Be humble.
  • Don’t call yourself.
  • Staff must call.  (Email/ Whatsapp/ Telephone/ Visit.)
  1. Never be rude (from 5:00 min). If you do so, you must expect that your payment will be either delayed further or you will not receive the full payment.
  • Don’t shout.
  • Don’t abuse.
  • Don’t insult.

In an order of 2Cr.:

  • Cost of one abuse = 1Cr.
  • Cost of two abuses = 100% bad debts

Watch full video (in Hindi) here.

  1. No Leniency (from 5:22 min). If you accept delayed payment without saying anything to the payer, then you must know that you will always receive delayed payments in future also and that credit period would increase in each payment.
  • Leniency for once will set a landmark for future.
  • Delayed payments forever
  1. Build relations with his neighbours (from 5:49 min). When the buyer know that you share good relations with your neighbours, he is bound to make your payments on time as he wants to maintain a good reputation in the eyes of his neighbours.
  • Reputation is on stake
  • Feeling of Importance
  1. Be open to hearing their reasons (from 6:23 min). There may be times where the buyer has some genuine problem in making an immediate payment. If it so, then listen to him with empathy.
  • He may be genuine.
  • His payments are delayed.
  • Genuinely at loss
  • Short of money.

In above cases be a good listener and ask his problem.

  1. Send updates invoice immediately (from 6:40 min). If the buyer says that he did not get the bill or has lost the bill or wants a reconciled bill, send him the bill immediately without any delay.
  • Bill to be reconciled
  • Bill is lost.
  1. Show interest for future business (from 6:58 min). If you decide that you do not want to do any further business with a particular buyer, you must not let the buyer know this. You should control your words and expressions. If you tell it to him, then you should be ready for:
  • More delayed payments.
  • Bad debts.

Watch full video (in Hindi) here.

  1. Let your marketing team handle first (from 7:33 min). You should try not to ask for payments yourself (unless the delay has crossed extreme limits or the payment is of a huge amount). Let your team handle it for you.
  • Don’t show your face
  • Team will handle.
  1. Collecting Agencies (from 7:54 min). Now that you know that you are having issues in collecting your payments, then you are left with only two resorts. There are collecting agencies which charge some commission and help you in collecting the payment by contacting the buyer again and again and again.
  2. File a lawsuit (from 8:30 min). At last, if nothing works then there is no other option than filing a case. But to remind you again that this option should be taken only and only if nothing else works and a huge amount is to be received.
  • Avoid court.
  • Settle out of the court.
  • Go if nothing else works
  • Keep a good law firm.

Watch full video (in Hindi) here.

If you have any other option for collecting the payments, you may mention it in the comment box below.

To know more about the business training or public speaking course offered by Mr Anurag Aggarwal, call us at 7834-99-9292 or visit www.anuragaggarwal.com .