As a business owner, when a customer is late paying their account, they typically get a lot of attention from you. You might even call them up and ask how things are going and find out if you can help them along – so they can pay their outstanding account!
But when a customer pays you right away, you tend to do nothing – except cash the cheque.
I am guilty of this. I have quite a few great customers who pay my fees right on the spot. I have decided to compile a list of these awesome clients and create a plan to formally thank them for being such great customers.
Pay your suppliers promptly
It also makes sense to pay your suppliers promptly when they do a great job. A business owner knows who the good and bad customers are and hopefully it reflects in the level of service you get from them.
Related Article – A Simple Solution to Small Business Cash Management Problems
Imagine if all the businesses that pay their accounts promptly only did business with each other. The slow payers could do business with the other slow payers. I would be interested to know if there is support for this idea or if it has been implemented formally or informally before.
How do you handle your slow paying customers?