“OMG why can’t people just pay on time!”. Every single one of us at one time or another have surely uttered these words. Have you ever actually wondered why? Like really analysed why? I have! And you my good people are going to learn the truth. Guys, there are 4 main reasons why people don’t pay on time. In order of majority they are:
– They forget.
– They don’t have the money.
– They have a dispute.
– They don’t want to.
Literally 4 reasons. The first one is self explanatory- we all forget things. I am no different and in fact James Gatward will attest to my regular tardiness with his invoices! But a friendly reminder will work wonders with these people and they will pay. Number 2- they don’t have the money. They won’t respond, and they won’t admit they don’t have it, because who wants to be ‘that guy’. Keeping face and maintaining a certain aura is much more important to some people than admitting they can’t afford it. The dispute one is a big one, but it really doesn’t need to be- work with your customer, and for god sake get yourself some money while you wait! “I am happy to consider your dispute, however would feel much more comfortable if you made a goodwill part payment today”. Number 4- they don’t want to. Isn’t this a ridiculous reason!! But my god it is so common it’s not even funny. Some people just like having money- they prefer to see it in their account than yours. These people need urgency- you have to give them a tight deadline and an “or else”.
There you have it- for those who don’t know me, I have collected millions of dollars worth of overdue invoices in my 18 years in debt collection. In addition, I have been a small business owner just like you for the last 5, and often have to chase my own clients for payment. Cheers guys, hope this helps!