Rewarding Good Customers is Good for business
Fortunately, most customers do pay on time, so why not have a system in place for rewarding good customers.
Avoiding bad debt isn’t that different to training a dog (or raising children & husbands).
Set the rules, behavior /standards, from the very beginning of the relationship and act quickly to correct any deviation as soon as it occurs and they soon get to know the boundaries – how far and how much they can get away with. Which should be ZERO.
However, there should always be room for flexibility for genuine and exceptional circumstances.
Think of ways to reward your prompt paying customers
You may not be able to offer a prompt payment discount, however there are many other options to reward your customers.
Do your customers regularly buy the same item(s)? Why not see if you can bulk buy from your supplier and pass on the savings to your Loyal customers. Make it a limited offer at a special price.
Prompt payers can often be encouraged to pay COD (or 7 days etc) on one-off deals – great for boosting cash flow.