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Slow-paying or deadbeat clients are the bane of small businesses. How are you supposed to pay your bills, much less grow your company, when the money you’ve worked for isn’t coming in the door? Inc.com‘s Christina Desmarais runs down 10 tips for getting paid on time and without the hassle.
1. Make each client sign a contract before beginning work.
A signed contract that delineates deliverables and details how much and when you’ll be paid protects both you and your client. It also makes taking legal action easier if it ever comes to that.
2. Offer incentives for paying early.
My local dentist, for example, gives 5 per cent off to people who pay with cash or check on the day they receive treatment. Advertise this perk on invoices, in the client contract, or on signage if you have a physical location.
3. Encourage customers to pay by credit card or electronic bank transfer.
“Sometimes this is as easy as saying, ‘How would you like to pay: by credit card or wire transfer?'” suggests Inc. columnist Jeff Haden.
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