Page 11 - KZN Chambers Business Sense - Vol4 No5

PAYMENTS OVERDUE? HOW TO HAVE THAT

CONVERSATION WITH YOUR CLIENT

Debbie Jones, Director, Structure the conversation 21 days late
Three Peaks Payment (clearly) A client can easily ignore your Having a challenging
House Often, a client who is trying firm’s emails, but it’s much more
to delay payment will wait until difficult to dismiss someone on conversation with your
rofessional payment is due before advising the phone.
firms you that they didn’t receive client about money
Pmight your invoice. At the 21-day stage, if your
spend their client still isn’t playing ball and isn’t most people’s idea
days advising 1-3 days late your invoice continues to gather
clients Your firm has delivered a dust, you may want to escalate of fun, but most small firm
on their service, your client hasn’t paid the matter by enlisting the help
finances, for it and all you can hear are of a senior staff member to chase leaders will need to do it at
but even crickets. So, it’s easy to think that payment over the phone.
they are non-payment is intentional, but some point.
aren’t it may not be. Genuine oversights Before making the call,
immune from the problem of late happen all the time, so give your prepare a list of potential
payments. client the benefit of the doubt excuses for non-payment and
To ensure that your firm’s
Having a challenging (especially first-time offenders). outline responses to them. 30+ days late invoices are paid on time –
conversation with your client about Once the invoice payment The caller should: If your client hasn’t made every time – you can also
money isn’t most people’s idea of deadline has passed, a junior payment (or meaningful contact)
fun, but most small firm leaders staff member from your accounts ■ State the purpose of the call within 30 days of the invoice choose to automate the
will need to do it at some point. department should give your clearly, directly and early on becoming due, it may be time to payment process by suggesting
With that in mind, we’ve compiled client a gentle nudge by sending a ■ Ask your client why payment issue a letter of demand (Section your clients pay you by debit
some tips to help you chase your firm – but friendly – email with a hasn’t been made 129 compliant), or to pass over the order. With debit order, your
client’s unpaid invoice (without copy of the invoice attached. The matter to a debt collection agency. firm can stop chasing unpaid
chasing your client away). email should say that payment ■ Listen attentively and respond If a letter of demand doesn’t invoices and start chasing new
is overdue, and your client must firmly, politely and trigger payment (typically, within business. n
Start the conversation (early) arrange payment as soon as empathetically 30 days) then legal proceedings
When chasing an unpaid invoice, possible or contact your firm if When trying to preserve a may be necessary, which is a clear Contact Details
it’s important to remember that they’re in financial difficulty. More client relationship, going to sign that your relationship has T: 0861 373 257
payment is already late. So, don’t often than not, a subtle reminder irretrievably broken down. E: info@threepeaks.co.za
procrastinate. By making contact is all that’s needed to spur an court is always a matter of last A: Offices in JHB, CT & DBN
with your client as soon as the otherwise motionless client into resort. If your client is reliable Suggest automating payments
invoice becomes overdue, your action. in the payment department, (completely)
firm may be able to close the exercise your discretion to Sometimes, companies end
payment gap by presenting more 7 days late allow them more time to pay. up writing off unpaid invoices
flexible payment options, such If payment still hasn’t been made But if your client is a serial (particularly those of well-
as changing the payment date seven days after an invoice falls late-payer, which is costing intentioned clients) because
or offering instalment payments due, it’s time to send a follow-up you time (and money) to chase, they weren’t effective payment-
through debit order. Whilst email stating that the invoice is stress that the matter is now chasers. But the reality is that
alternative payment routes don’t still outstanding, and payment is urgent and payment is required your firm is in the business
guarantee payment, they do move required within, say, 14 days to immediately to prevent legal of doing business, not debt
the dial in the right direction. avoid escalation. action. collection!

THE PEOPLE WHO SHAPE US

Shantelle Booysen, they need technical coaches, think that my assumption was Growing up, I had a family who If I can leave you with three
CEO Elim Spa fitness coaches, sleeping that everyone knew I appreciated supported me and a mother who things today it will be the
Products coaches, eating coaching, him or her, everyone knew how made the ultimate sacrifices. following.
I felt about his or her input. He
Everything she never had, she
behavioral coaches and more,
F or but in business we still believe has taught me to verbalise this. decided her daughter would ■ bless yourself with an
Next year on your birthday
the harder I work by myself the
have. A university education,
For hours we sat and wrote
enrichment course. Attend
Cristiano better I will get at this. future descriptions of how and attending the best schools, a something like toastmasters or
fairytale wedding and when I
learn a new skill. Complete the
where I see myself, what I want
Renaldo This cannot be further from to accomplish, what I behaviours started my business she even did course.
or Serena the truth. In my life, I have I need to change. I remember my bookkeeping for a few years,
Williams experienced this over and over. keeping me on the right track ■ Get up every morning and
to soar From a young professional life, when I told him I wanted a and controlling my cash flow. dress for success. Laboutaine
to great I have been blessed with people Porche Targa he threatened to has become a multi millionaire
heights who walked alongside me and get the Porche dealership to call The model of my story is that because he understands how
and win best player of the year who made a great impact and me on a monthly basis to see there have been at least 50 people women feel the minute they put
on high heels.
how far I am from purchasing
that have helped shape who I am
and 24 grand slams takes more groomed me to excel in certain my new vehicle. today. I am proud to be a result
than just practice. I absolutely things. I still have them. of what they invested in me. ■ Take care of yourself and allow
believe in what Gary Player I have had the honour of having We need these people in our lives. yourself to dream and have a
said, “The harder I practice the a life coach who groomed me I have had friends who pushed If it is ok for a sports celebrity fairytale future. Daydream
better I get”, but to excel to the in business and I still call him me to go out there and enter to get help, why are we feeling about the future and go out and
levels where these sportsmen when I get stuck or when I am competitions like Exporter of the the pressure in business to write that future description. n
and women have gone, takes a uncertain on handling a certain year or Business Woman of the appear perfect, like we know it T: +27 (0)21 553 2309
lot more than just practice. situation. He has taught me the year. Becoming finalists in these all? What is stopping us from E: info@elimspaproducts.com
For some reason we look at art of gratitude and appreciating events, boosted my self-esteem being vulnerable and accepting W: www.elimspaproducts.com
these people and accept that people. Before I met Carl, I tremendously. advice and help?

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