Why offer payment plans?

Everyone wants to get paid in full and on time but the most important reason you want to offer payment arrangements is to get paid something when you are getting paid nothing.  

If a customer is avoiding you or becoming more delinquent, it is likely they just cannot pay the entire bill and don’t realize they have the opportunity to set up a payment plan.  

In my years of doing collection work, many of the debtors I would call did not pay because they thought they had to pay the whole amount due, and once they realized they could set up a payment plan they were relieved and able to start making payments.  The key to offering payment arrangements and actually getting those payments is to be realistic.

If you treat your customers well, they will continue to be your customer even after their financial crisis is over.  They will appreciate that you worked with them and continue to be loyal and tell others about your business.

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.