Act like you’ll get paid and you will

I trust that you'll pay on time

This was one of the first things I was told when I went into my first consulting business.

It is an odd comment on human behaviour and when put into practice it works well. I have learned the hard way what happens when you don’t.

Here’s what you do.

1. Provide a written quote and contract up front and in a timely manner.
2. State pre-payment terms up front, make it prominent on your invoice and let them know politely they’ll have to pay before you begin work.
3. Prepare the invoice on the day it is due . For example, on the last day of the month, when the product is delivered, etc.
4. When a bill is overdue ring up politely and ask about the status of it. If that doesn’t work, resend the bill but as a re-issue and first reminder.

If you act like it is okay to be paid late, or not to contract terms then your customer will always treat you that way. Remember, they have other people they need to pay as well, so if they are managing their cash flows by paying some people late, you need to make sure that it isn’t you.