If you want to give a discount …

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If you want to give a discount …

... apply the credit note after the reduced amount has been paid.… apply the credit note after the reduced amount has been paid.

In one case recently, the debt collection lawyer one of our clients uses when collections go “legal”, noticed that with one particular invoice that she was pursuing, the addendum to the invoice had disclosed “reduced costs”; that is: they had disclosed what the whole job had cost XXX, “but for you, say . . . YYY”. Notwithstanding that, the matter had gone to legal. She passed on this recommendation which is well worth implementing if you ever do that.

“You may wish to suggest to the Partners that if they discount costs, they state that the discount is conditional upon payment being made within a certain period of time (ie: say 7 or 14 days) to firstly encourage prompt payment and also enable the Partners to pursue the whole costs if it is not paid on time (particularly if you have to sue them to recover the costs).”

She raises an extremely valid point from a “collection” perspective as it encourages the client to contact you if they can’t pay strictly within terms which, in turn, allows you to “extend” the discount period – when reasonable – as well as enabling you to pursue the larger (undiscounted) amount if necessary.  Let’s you remain the Good Guy.

OK, pay this and we’ll call it quits
This also applies if you decide to accept a reduced amount when someone’s disputed a fee and you decide to accept less to finalise things. Give them the discount AFTER the reduced amount’s been paid.

See also do doiunctss wrok?

By | 2017-07-13T08:51:40+00:00 September 3rd, 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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