Most business owners are so concerned about how to get a customer they lose sight of what it takes to accept money from that customer in the most cost effective way.

If you can establish some ground rules with your clients you can avoid the pitfalls that many businesses face......collection.

Here are 5 ways to improve your cost effeciency and lower business costs.

1.  Require your customers to sign a contract authorizing automated payments.  Insurance Companies do it. Utility Companies do it.  Newspapers do it.  Why can't you do it?  This works perfectly for a one-time sale.  Whether your are selling over the phone, internet or email it's easy to include in your contract a section where the customer agrees to have the payment processed by electronic debit.  It's ideal for any service or subscription product where you need to collect funds from your customer on an ongoing basis. 

2.  Offer a discount to customers who pay by electronic debit.  Imagine you are a landlord and your tenant owes you rent on the 1st of each month.  You have 50 units to manage and you have a full-time bookkeeper collecting those checks and calling those tenants who didn't pay ontime.  Consider requiring each tenant to pay by electronic payment and offer them a 5% discount on rent.  You'll have all your rent on the 1st of each month (or whatever day you designate), and you'll eliminate the costly expense of collection. 

3. Net 30?  Go Green.:  Many businesses ship products or provide service and then mail an invoice.  Then they sit back and wait for the check to arrive.  After 30 days they have collection issues.  Maybe 10% didn't pay on time.  This is the cost of doing business right?   Wrong.   When you contract with your client include the requirement for an electronic debit after 30 days.  Then simply process the debit accordingly.  Don't mail invoices. Email them.  Save paper, Save a tree.  Eliminate paper waste. 

4. Collections Department Nighmares.  So you operate a large business and have a decent number of receivables.  In fact you have staffing just to call and try to get money from those slow payers.  Give those customers the option of electronic payment by telephone.  Money moves quicker and you eliminate the paper nightmare of collection.

5. Document your sale.  Whether it's an internet sale, a telephone sale, a mail-order sale or a sale in person it's important for you to document your sale.  You should have a contract that includes the terms of your sale and the conditions for payment.  This contract will identify your rights to collect by electronic check, the additional costs if the funds are not good, and how the payment will be debited from your customers account.  You will eliminate charge backs and provide a written track record should you have legal issues down the road.