PAYMENT FOLLOW-UP: WHY & HOW
Payment follow up in every business activity is very important part. Every businessman must track the payments against their services offered or received.
As a businessman you need to keep long time, I will say lifetime relation with any customer or supplier. We should keep relation with everyone without looking economical view of that customer or supplier.
As we all aware that most of the business relations breaks due to payment issue. Why it happens? It is because of poor follow up or wrong method of follow up. Here I am listing some key points which will helps to understand the importance of the follow up system.
- Timely and smart follow up builds the strong customer/supplier relationship. Customer will stick to you as they got best service.
- Follow up (especially regarding Payment) with supplier will strongly effects on the next product / Service.
- As per research payment receipt on time fails due to improper follow up. It may happen due to poor communication by staff, missing due dates etc.
- The more than 80% companies need to invest high on follow up, around 50% small/large scale companies failed to the suppliers on time. And most important is that no of companies relies on the bank borrowings.
- The business activity hampers due to delay in payment. Every entrepreneur should maintain the cash flow being paid in time.
- There are no of ways of follow up like whatsapp, SMS, Email or phone calls. Among these most effective and professional way of follow up is by sending Emails or SMS.
- The follow up message should be properly drafted viz. it must include Invoice No/Date/ Payment amount /Due date along with gentle reminder text.
- The gentle reminders will always works and it will helps to makes payments on time.
- The effective use of follow up system will help to know the customers financial and credit status.
I hope this small article will help any businessman to know the importance of the follow up system.