DO YOU THINK YOUR BUSINESS NEEDS UPFRONT PAYMENT?

You like financial security. Who doesn’t? There are few things more pleasant than knowing when to expect your due payment.

Unfortunately, many business owners go through a great deal of anxiety as they have to chase customers, nay, hunt them down in a bid to get their payment for a job well-done.

It’s possible you too might have been in such an unpleasant scenario. The memory of such an event arouses anxiety and a strong desire to prevent such encounters from ever crossing the way of your business.

But how do I get this done?

It’s not so hard when you implement upfront payment for your business.

But my customers will refuse to pay upfront! What then?

Relax. There’s probably a reason why the customer wishes to avoid paying you upfront. He is of the opinion you’ll probably up and run with his hard-earned money without doing the job at all, and the tables will be turned on him.

But a counterargument you can provide to your customer is:

My asking for upfront payment is a sure sign of my seriousness with my job. It means I know you will be satisfied with the finished product and little/no need for revisions, as would be the case with businesses people pay up when the job is concluded.

What types of businesses qualify for upfront payment?

Airlines, shows, events with a limited number of seats. This is because the customer’s payment for a seat already limits another person’s chance of getting into the event. As the show must go on with or without the customer, the organizers mandate that he pay for the event in full, not in part prior to the event.

This helps them recoup the costs of organizing the event in the first place.

Freelancing jobs that often get lots of revisions. Freelance writers, graphic designers, photographers etc. are often beset with the problem of difficult customers who subject them to numerous revisions for as long as possible in a bid to hold off payment.

Insisting on upfront payment prevents you from encountering such clients as this serves as a disqualifying process for difficult clients that can literally frustrate you out of business.

Businesses serving Corporates with a lot of bureaucracy and red tape. This is because changes in the corporate’s finances do occur and can result in withholding of payment for a long time, thus upsetting your own business cashflow.

Businesses that make special offers speedier than their regular offers. It is only proper the customer pay upfront, and higher for a speedier service.

If your business falls under any of these categories, you can courageously ask your customers for upfront payment.

Making unwise concessions in business often bounces back on the business owner as he gets frustrated out of business by clients who send him on a cat-and-mouse game.

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