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Forums » Customer Service & Customer Experience

Late Payments!?

    • 1 posts
    June 3, 2014 8:21 AM EDT
    I'm thinking about asking for my invoices to be paid upfront into an escrow account.

    I spend so much time chasing late payments, I'm hoping this will make things easier for me (and reduce my costs!).

    I realize that clients would probably prefer to keep their money in their accounts as long as possible so it can work them.

    Do you think that, if I offered a discount (greater than a bank's interest rate) on the invoice, that escrow would be an appealing option?
    • 11 posts
    July 13, 2014 9:17 AM EDT
    Getting prepaid is one of the great secrets to longevity in business. I'm not convinced you need to even use the escrow account....unless you're talking more than about $2,000. Anything under that should be prepaid. If you phrase it right in your sales process that you "just like to get the money part out of the way so we can focus on the project" people will agree with you. It's all about the approach.