Late payers? Here’s how to take back your power

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Late payers are holding back NZ small business owners. Here’s how to take your power back.

 

Late payers are holding back NZ small business owners. Here’s how to take your power back.

Halting or delaying payments to small businesses is hindering small business growth and survival in New Zealand.

In fact, for many small business owners, waiting to be paid has unfortunately become part of the NZ business culture and dealing with late payment terms is a significant barrier to SME growth.

Dealing with late payment terms is a significant barrier to SME growth.

   

Tips on shortening payment timeframes for SMEs:


Stick to your credit policy: Don’t just accept payment terms bumping up to 60 or 90 days. Make your payment terms clear when you start working with them.

Make it easy to pay: Look into other options apart from cash and direct deposit that make it easy for your small business to accept payment such as BPAY, PayPal or credit card.

Automate the follow-up: Automate the invoice chasing process, removing those awkward conversations with your customers.

Offer incentives to pay early: You could consider offering a discount to customers that pay before a pre-determined date.

Add Pay Now: Platforms such as Xero that offer the Pay Now option can help encourage customers to pay faster, so consider adding a link to all invoices.

  


Article Brought to you through Well Covered and Cartwrights

 

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