GETTING YOUR CUSTOMERS TO PAY AND PAY ON TIME

One of the biggest issues facing all business owners today is cash flow, that is getting paid by your customers and being able to pay creditors.

If you can collect all of your debts you are in a better position to pay your own debts. If you have supplied goods or services to your customers it is a reasonable expectation to be paid in a prompt manner.

Here are some tips to help you collect your payments due in a timely manner.

1. Offering Credit Accounts: When offering credit you need to consider your customers past payment history, along with the average spend to determine whether they actually do need credit, or a cash account will suffice.

2. Terms & Conditions: These are important. Make sure you document clearly your terms and conditions of trade in any contract or invoice you are entering into with a client. If a debt goes bad it will be harder to seek legal avenues if the customers’ obligations are not clearly set out.

3. Prompt Payment Incentives: Offering prompt payment discounts is a very effective way to get your invoices paid on time. You can try offering a discount of 2-5% if the invoice is paid within 10 days.

4. Payment Options: Providing convenient payment options for customers can help speed up the payment process. Some customers like to pay using online banking, others prefer credit card payments. Making the payment process easier for your customer will make it easier for you to receive payment.

5. Customer Communication: Make sure your customers have received their invoice and there are no problems. Contact the client before the invoice is due and again after if payment hasn’t been received. Explore options with the client to receive payment rather than it becoming a bad debt. If the customer cannot pay, get them to commit to a date and amount for when the payment will come. When you are specific about details they are far more likely to pay you. Keep detailed records of all communications with the customer; this will assist you on following up on the commitments received from the customer.

6. Keep your Debtors Records up to date: There is nothing worse or more embarrassing than chasing a debt that has already been paid by the customer.

7. Provide Good Customer Service: Always service the client promptly and efficiently, late or non-payment can be a signal of poor service or a lack of communication with the customer. If there is a potential issue, try to identify and rectify the issue. This is an easy way to avoid the same issue in the future, keep your customers happy and ultimately receive the payment.

By working with your customers you can help make the payment process smoother and an easier experience for both parties involved which will help achieve your ultimate goal of being paid and on time.

If you have any further questions or would like to discuss this matter please do not hesitate to contact Logan Granger.

Disclaimer – While all care has been take, Johnston Associates Chartered Accountants Ltd and its staff accept no liability for the content of this article; always see your professional advisor before taking any action that you are unsure about.

BLAIR HADDOW: HIGH-END PONSONBY HOME SELLS AFTER JUST FIVE DAYS ON THE MARKET

In less time than it takes to produce and publish an edition of Ponsonby News from one month to the next, leading Ponsonby/Herne Bay/St Mary’s Bay/Grey Lynn residential real estate salesperson Blair Haddow has listed, marketed, and sold a luxury home in locale.

Since publishing the February issue of the Ponsonby News magazine, the Bayleys Ponsonby salesman was approached by the owner of 40 Pompallier Terrace – a sleek fourbedroom/two bathroom fully modernised bungalow with chic open plan living and outdoor entertaining overlooking the easy-care back garden with in-ground heated swimming pool – and asked if he would take on the assignment of selling the Central Ponsonby family home.

Realising that residences of such elegance were highly soughtafter by his expansive database of pre-qualified buyers, Blair took up the sales challenge knowing he had all the tools and experience required to ‘get the job done’ for his client.

Within just five days of listing up the luxury residence for sale, then promoting the white picket fenced opportunity online and through to his exclusive buyer database, Blair had received multiple offers.

After going into a multi-offer programme, the chic Pompallier Terrace home sold for close to $4million. The impeccably designed home’s vendor chose Blair and Bayleys Ponsonby to sell the dwelling after they were personally recommended by one of Blair’s previous vendors who was super impressed by Blair’s professionalism throughout their sales process.

Blair also had four properties across the western city fringe suburbs coming up for auction as this edition of Ponsonby News was going to press. Details on those auction results will be featured in next month’s edition of the magazine –so diary it in for an update of the sales at 55 Summer Street in Ponsonby, 60 Sussex Street in Grey Lynn, 79E Kelmarna Avenue in Ponsonby, and 53 Rose Road in Grey Lynn.

Fully expecting that the four homes will sell under the auctioneer’s hammer, or through negotiations immediately afterwards, Blair Haddow said he was now ready to take on more listings to fill the selection void which would emanate.

“There’s a lot more confidence and positivity around the residential property market already this year than there was at this time last year. Buyers and sellers have taken on board the current economic conditions and are now accustomed to where values are sitting,” he said.

“I’m noticing from our website tracking stats that a lot of ‘hits’ are tracking between all of the properties I’m selling – particularly in the $3.5million - $5.5million brackets. That shows me that buyers are not only looking to benchmark pricing levels, but are also assessing what stock is out there in the market around Ponsonby, Herne Bay, St Mary’s Bay and Grey Lynn.”

Blair also noted that in line with the new-found positivity in the market, the number of people coming to open home viewings since the end of January had also reached near peak levels – even in spite of the two adverse weather events which impacted on the city. One of Blair’s open home viewings alone in the lead up to Cyclone Gabrielle attracted 22 groups.

“There is definite buyer demand for homes across the Ponsonby, Herne Bay, St Mary’s Bay, Grey Lynn areas above the $3million price band. Obviously as a result of what we’ve seen in Auckland twice now over the past month, demand will be higher for homes located well away from valley troughs, beside creeks, or well back from cliff tops,” he said.

“I’m expecting interest in homes for sale which have shown structural and landscaping resilience to the two recent weather events will be considerably higher in the future now that buyers are aware of the living security and peace of mind they offer,” Blair added. (BLAIR HADDOW)  PN blair.haddow@bayleys.co.nz www.facebook.com/BlairHaddowResidential