Photo courtesy Flickr lancefisher cc

Sometimes the difference between keeping a customer and losing a customer boils down to just how easy it is to do business with you.  As you were just beginning your company, you probably found it best for you if you were able to bill and collect at the time of your service visit.  But, as your company grows, you will probably find it easier to mail invoices and collect payment monthly.

The more methods of payment you you offer, the more likely your customers are to pay you promptly.  So, in the interest of keeping your cash flow flowing, here are some ideas:

1.Sign up for PayPal

• -if you email invoices, include a PayPal link to encourage prompt payment
• -If you have a website with “membership” capabilities you can have a password-protected page for each customer to review their invoice and billing activity with a PayPal Pay Now button on each page.

2.Merchant Accounts with your local bank

• -this might be difficult to get without unreasonable fees (which is why I use PayPal)
• -this will allow you to accept credit card payments by mail or phone.
• -you should also check into using 3rd party processors if you can’t get your own merchant account.  Just do a Google search and really check into the company you decide to use.

3.Mobile Processing

• -some credit card processors have mobile equipment which allows you to process credit cards on the service call through their equipment and your cell phone.

4.Monthly Payments

• -break your service fees up into 12 equal monthly payments to keep your customer’s service cost low in the summer and you cash flow up in the winter.

5.In-House Financing

• -allow your customer to pay in monthly installments for a premium fee.
• -incidentally, if cash flow is tight, financed accounts can be sold to factoring companies who buy accounts receivables from cash strapped companies.

6.Recurring Billing

• -PayPal and many Credit Card processors allow recurring billing options.  This is usually for subscriptions and memberships, but it could be worked out to complement your business as well.

I don’t know all the possible options, but this short list should get your creative juices going.  There are so many more options available today than just a few years ago.  Let your customers pay you with ease and you might see better customer retention.