Managing client relationships for timely payments

6 key tips to managing client relationships for timely payment

6 key tips to managing client relationships for timely payment 800 533 Jimmy Bishop

Developing a good client relationship is one of the most critical aspects to propel your business to success. It helps your business achieve financial success through the generation of steady sales, customer retention and consistent cash flow. In Australia, invoices for small businesses take an average time of 30 days to be cleared. Sometimes it can take up to 38 days to pay an invoice

It is essential to take care of late payments since they can pile up pretty quickly, forcing you to use other resources to keep your business afloat. Delayed payments can make your business to struggle due to unhealthy cash flow. To ensure your business does not struggle financially, it is essential to priorities your client relationship and management of credit. This article discusses the importance of developing good customer relationships to ensure timely payments and reduce the need to engage debt collectors to recover bad debt.

Tips for managing client relationships

Focus on effective communication

Prioritize on timely and efficient communication with your customers to maintain a healthy relationship. It guarantees your clients that you are available for them and you care about their needs and satisfaction. Ensure you are there for your customers when they need you and offer them timely and detailed communication. Make sure you carefully listen to your clients’ feedback and address all their concerns and ideas. It makes them feel comfortable and honest with you, which increases their level of trust in your business. It increases the chances of your clients settling their credit on time since they have confidence in business.

Be open

Being open to your clients is crucial in developing strong relationships with them. It guarantees your clients that you are a trustworthy and reliable expert. Ensure you maintain an open policy when it comes to professional opinions and assessments regarding your business. Do not make the mistake of concealing your correct view or telling them the wrong message to please them. This practice is counterproductive and damaging to your reputation, therefore, minimizing your chance of creating a lasting relationship. Articulating honest opinions ensure you earn respect from your clients due to your aspiration for excellence.

Exceed customer expectations

Build your reputation as a reliable business by delivering exceptional results consistently. It ensures clients feel motivated to trust you, which positions your company for long-term deals. Make sure you consider your clients and their needs. Determine what they value most and develop your products or services based on your customers’ personal preferences. Ensuring your clients feel value for their money will prompt timely payment since they appreciate your assistance.

Ways to encourage timely payments

Build a solid client credit strategy

Ensure you have a definite plan to conduct a client’s background check, credit history and limit before agreeing on offering high-value products to a new customer. A good credit history guarantees that you can develop a lasting relationship and trust them to settle their invoices on time.

Set credit terms

Set a solid outline for debt collection. Limit long term credits since they are likely to affect your cash flow. Ensure there are good incentives such as discounts on timely payments which will encourage clients to honor their debts.

Seek the help of debt collectors

Seek services of a professional debt collection agency to follow up clients with invoices that have extended period. It also ensures you maintain your customer relationship, especially where communication has gone downhill, making it difficult for your reach to the client. Professional debt collectors will help you avoid conflicts with client hence maintaining a good relationship.

About the Author
Local Recoveries Group are industry-leading debt collection and recovery specialists. With extensive experience specializing in debt recovery and slow payer management, they have built a reputation as one of the best debt collectors for both small and large enterprises. Servicing businesses from all sectors, they provide specialised debt collection Sydney, debt collectors Adelaide and debt collection Melbourne and slow payer management solutions to businesses across Australia.