how to get a better payment arrangement

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how to get a better payment arrangement

always ask for moreYour business is NOT a charity. So, when a client tells you they can’t pay the full amount, although it’s very tempting to accept what’s first offered, try asking for more, blaming something else (for not being able to accept a payment proposal) and use Fear Of The Unknown. 

If you do, you can often get a client to reconsider what they COULD pay if they had to.  (In the case below the client didn’t know what would happen if their payment proposal DID go to the Board and was not approved.)  


As a result of applying the above principles, exposure can be minimised, goodwill retained and payment received earlier. This happened earlier today ….

1: The accounting firm client (Andrew) couldn’t pay the full amount of their $4,500 fee to the Partner, John. Their email said  …

Dear John,  I refer to this outstanding invoice and advise that Andrew would very much appreciate it Camelots could see their way clear to extending the payment timeframe to the end of April 2013 when we expect a royalty payment to be received from South Africa.  I look forward to your response in relation to this matter.  Kind regards  Mary Smith Bookkeeper

2: The Partner (John) asked his book-keeper,

Gwen. Can you respond to Mary and kindly suggest as an alternative:
1/3  in Feb;
1/3 in Mar and
1/3 in April.
Payment at the end of each month.
Thanks, John.

3: Gwen wrote

Dear Mary,  

Thanks for your recent email asking if the firm could extend trading terms so that payment for your account could be made at the end of April.

Although not able to do so without Board Approval, may we suggest the following payment plan as an alternative.

  • 1/3 to be paid end of February – $1,521.00
  • 1/3 to be paid end of March – $1,521.00
  • 1/3 to be paid end of April – $1,523.00

Please advise if this would be acceptable to you.  If it is not, please let me know and I’ll submit it to the Board.  

Kind Regards,
Gwen Iveer – Client Liason

4: The reply came back within minutes …

Dear Gwen,

Thank you for your email and the suggested payment plan.
I
 will ensure the payments reach you as per the dates below.

Kind regards,
Mary Smith Bookkeeper

NOTE:
The Board do NOT have to approve all payment arrangements, but …. 

the client didn’t know that!

 

By | 2017-07-13T08:51:40+00:00 February 20th, 2013|techniques|0 Comments

About the Author:

Have you ever wondered why a client does business with you and then ignores your invoice like they had no intention of paying it in the first place or they treat you like their own personal line of credit, leaving YOU dangling, waiting months for their payment? Unfortunately this situation is all too common and can even be puzzling for the most experienced business owner. If you’ve ever had to handle outstanding accounts or you are just so over non-payers, then we can help. Real-world skills, solutions, tips & strategies to get more accounts paid on time, and, most importantly, how to maintain customer goodwill while keeping YOUR cash flow in the positive. You will find the blog posts helpful but to get real results, contact us by using any of the forms on this site, by email or by phone. I’ve been involved in the management of accounts for over 30 years, heard every excuse in the book, can spot a non-payer at 20 paces. Finance Companies in the 70s (systematic, tough), professional firms in the 80s (no systems, too gentle) and, since then, just about every other sort of business you can think of. I’ve written books on the topic, spoken all over the place about it and the blog in this website is my way of “giving back”. I hope you find it helpful.

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