How payment plans can help you

Many business owners don’t like to offer payment plans, it is more book keeping for them and a hassle they don’t want to deal with.  Keep in mind that if someone owes you money and are having trouble paying the total balance in full, they probably owe others money and who ever takes positive action first or offers them a solution, will get paid first.  When you are able to work with your customers or set up a realistic payment plan you will:

•    Increase profits and revenues
•    Retain customers
•    Improve your operational efficiency
•    Increase your bottom line
•    Minimize your risk
•    Have less bad debt
•    Be able to efficiently handle and control your accounts receivables

Identifying which accounts need payment arrangements and contacting those customers before they become over due will dramatically affect the bottom line of your business.

Payment arrangements will affect your business by providing you with some cash flow where you may not have had any.  By offering payment arrangements you are extending a helping hand to your customers and your community while enabling your business to continue to stay in business and become more successful.  If you do not offer payment arrangements you may have much less cash flow, you may lose customers and you may become unable to pay your own bills resulting in your business going out of business or filing for bankruptcy.

Offering payment plans let your customer budget a set amount each month to pay to you; this can help them when money is tight because they know the exact amount they need to pay each month which is easier for them to handle than maybe making the entire payment.  Thus you will get paid, but over time instead of a lump sum.  This can also benefit your business because instead of not getting any of the money, you get a bit each month and can use that towards paying your own business bills.

Bio

Michelle Dunn is an award winning author and columnist frequently featured in the Wall Street Journal, CNN and Forbes. Look for her newest book being released in May by Wiley Publishing titled, "The Guide to Getting Paid, weed out bad paying customers, collect on past due balances and avoid bad debt, available for pre-order now on Amazon.