Customers holding out on payments in NZ
When your good customers begin to stretch out and hold onto payments because their customers are doing the same, you are going to have to think and approach things differently. In these recessionary times it would be unfavorable to use a sledgehammer approach (like debt collection) on your best customers. An empathetic approach to collecting money is very important right now, as everyone knows the whole money supply chain is under stress due to COVID-19.
Lets take the example of Bob the mechanic.
If he doesn’t get paid by his customers on time, it means every other supplier he has on his books gets delayed as well. For example the landlord, the Auto parts supplier and the sign writer he uses. In turn all those businesses suffer from cash flow starvation and so the downward spiral continues.
Right now, we must accept these circumstances. They are grim and business confidence is low. But lets not become totally locked up and in a cash flow jam.
As a business owner it is our responsibility to chip away at getting everyone who can’t pay us right now on payment arrangements, so we keep the cash flow train chugging along.
Its a positive step forward and protects our cash flows and the future relationships with customers. Show Empathy for your best customers and offer payment arrangements for both parties to alleviate for your cash flow. Call us and we will help you.
How does it work?
- Sign up for free
- Set up the payment arrangement offer
- Send it to the customer
- They accept
- You only pay the 2.95% fee on each payment received.
- BONUS: if you have a clause in your Terms and Conditions then you may even be able to request they pay the fee and you then receive 100% of your money.
You might want to check out our business tactic for using Drip to apply for business loans too.
We are here to help newbies utilise Drip to get their good customers on a legally binding payment arrangement to catch up and get the cash flow happening. Sign up now to get started