Does
your company provide printer service to small businesses?
And if so, would you like to build a recurring service
stream from more long-term clients, rather than constantly chasing down
one-shot-deal customers?
Many owners of printer service companies cringe when
they think about the complexities of setting up payment policies, terms
and credit/collections. However, it doesn’t have to be difficult. Just
make sure you take into account your own unique business model and the
types of clients you serve when you are determining how to set up
important items like credit and payment plans.
The following 3 pieces of advice will help you establish
sound printer service payment terms.
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Seek Help from Your Accountant to Set Up Credit
Policies. Your accountant will be in a great position to help
you set up a system to evaluate completed credit applications and
credit reference letters. Make sure you have credit policies in
place so you can safely extend credit to your clients and ensure
that you get paid. In addition, be sure to discuss how you’ll
arrive at, monitor and enforce established credit limits with your
important clients. Writing off debt can be extremely painful, both
financially and psychologically. So you really need to spend serious
time discussing important credit issues with your accountant and
setting up procedures and controls. Because credit and collections
can also cross over into legal issues, you should also consult with
your attorney before finalizing procedures.
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Know How You Will Get Paid. Regardless of how
you set up and communicate your payment policies for long-term
printer service contracts, you must have a firm grasp on how you
will get paid by your clients. Those in the computer business are
literally all over the map when it comes to payment terms, credit
policies and billing procedures. Some insist on cash-on-delivery
(COD). Others trust their gut feel or a handshake and just assume
all the financial risk. You need to have a really good plan for
ensuring you get paid ... or you’re not going to last long.
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Explain Your Payment Terms and Retainer Deposits.
You’ll do fairly well with printer service contracts if you
explain your payment terms and require up-front retainer deposits.
Attach firm due dates to payments and make sure your clients
understand that your policies and expectations are not just
suggestions. Don’t even think about granting any substantial
amount of credit to a client without first securing and processing a
completed credit application. Your payment policies and retainer
deposits need to be worked clearly into your contracts and discussed
before you agree to work with any client.
In this brief article, we presented 3 tips to help you
establish payment policies with your clients so you ensure you get paid
on time and in full. To learn more ways to
start your own computer repair business and attract great, steady,
high-paying clients, go sign-up now for the free
Sample Tips and Excerpts below
from the Computer Consulting Kit Home Study Course.
Sample Tips and
Excerpts
One of the best ways for you to experience the sheer
time-savings and revenue-generating power of the Computer Consulting Kit
Home Study Course is for you to experience it yourself.
To help you do so, we’ve made available extensive
sample tips and excerpts, of the easy-to-customize document templates,
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