Let’s say you had the perfect tool at your disposal to prod some customers who back-burner your invoices. Then you found out employees weren’t using it.
The tool: late charges.
Despite the fact that many organizations have an allowance for late fees built into their contracts, most aren’t using ’em to their advantage.
The proof: A staggering 56% of companies told the National Association of Credit Management (NACM) they don’t assess late fees.
It’s understandable why some companies may not want to hit customers hard with penalties now.
Many businesses (and consumers) are having a rough go of it, and your company may not want to risk straining relationships.
But you can still use even the prospect of late fees as leverage to build relationships.
For example, offering to waive fees for a “strong customer” who happens to be a little behind will get them paying and make them feel extra valued by your company.