Missed customer payments are an inevitable part of business. Regardless of the proactive measures you may put in place to mitigate any potential instances, you can be certain that your clients or customers can and will miss payments.
Chasing clients is one of the toughest jobs many business owners have to deal with. Not only does it take up valuable time and greatly impacts a business’s cash flow, it can be an emotional rollercoaster that some people simply don’t want to deal with. So why do so many people find it awkward?
Below are a few of the reasons why many businesses across Australia find it difficult to have these conversations and how missed payments can be seriously detrimental to your business.
If you find it awkward to approach clients that haven’t paid their latest bill or invoice, you’re not alone. Thousands of business owners find these conversations difficult for a variety of reasons.
For some, it’s just not in their personality to be confrontational. They avoid conflict and uncomfortable situations at all costs, even preferring to go without being paid if the client hasn’t responded after several attempts. If you are a business that provides an ongoing service like a Personal Trainer or a Hair Salon, it can become extremely awkward trying to deliver a great experience and then having to navigate a potentially tense conversation around asking for missed payments.
By outsourcing the management of your missed customer payments to a payment solution service like Transacty, you’ll never have to worry about another awkward conversation again. Transacty’s dedicated team of specialists have experience in handling missed payments on behalf of your business. Their friendly, professional manner ensures that each and every client is handled professionally, ensuring things don’t get awkward whilst allowing the business to focus on providing the best possible service or product.
It might damage the relationship
The fear of damaging the relationship with the client is another major reason why people find it difficult to chase up missed payments. In reality, the agreement between you and your client should be quite clear based on the terms and conditions you decided on. Nevertheless, businesses worry that clients will get upset, or worse, fail to come back or give a bad review.
By appointing Transacty’s relationship managers to manage missed payments on your behalf, you are removing your business from the situation, ensuring a personalised payment and customer experience. When clients are contacted by a dedicated team of relationship managers in regards to a payment they’ve missed, it gives the client a sense of urgency to rectify the situation and also shines a light of professionalism on your company.
Other signs you need to address missed payments for your business
Awkward conversations and the fear of damaging business relationships aren’t the only issues businesses face. There are far more detrimental factors regarding missed payments that if left unaddressed, can severely hinder your business and its ability to operate.
It’s hurting your cashflow
Unfortunately, late payments are a growing issue for small businesses, with recent report figures showing that late payments cost small businesses $7 Billion a year.
If you own a business that has multiple clients or a large customer base, the occasional missed payment might not be the biggest deal. That being said, overtime they can slowly add up to a sizable amount of lost profit.
It becomes a far bigger issue if you’re a business that has several large clients or operates on a job to job basis. A missed payment may be the difference between funding your next project, paying for your business overheads such as rent, materials, hosting or support fees, or simply paying the staff you employ.
Whatever the situation, missed payments should be viewed as critical, regardless of the amount or the frequency they occur.
It’s too time consuming
Any business owner knows how time consuming it is to run a successful business. There’s a seemingly never ending list of things to do, with many business owners working 12 hour days to try and keep on top of things.
Adding recurring missed payments to your list of things to do is the last thing any business owner needs. If you’re tasking a staff member to do this for you, the hours can quickly add up, so not only are you not receiving payments but you’re paying for staff to chase them up.
Transacty – A missed payment solution
If missed payments are affecting your business, you should seek a professional service that can help recover your missed payments quickly and professionally. Transacty’s dedicated Australian based relationship team will follow up any missed payments on behalf of your business.
Say goodbye to awkward time consuming conversations chasing missed payments and let Transacty do the hard work for you.
If you’d like to learn more about how Transacty’s missed payment solutions can work for business, contact us today.