There are many different ways to approach the concept of marketing. However, you won’t last in the long term if you don’t understand some of the essentials of payments and repayments. You’re probably very familiar with income and expenses and loans. But, within the business construct of invoicing, there are additional complications and challenges trying to get money and trying to figure out the most efficient way to pay your own bills.
Consider a few different topics that illustrate this point. When getting a loan, there is the concept of serviceability. With payments and repayments, you may have to mix and match different methods of electronic money transfer. Within the ideas of debts and repayments, there are coupons and discounts that may be in play. And, there are penalties for late payments depending on the invoicing structure of your particular company to a client.
When banks or people give out loans, are you aware of what their expectations are as far as repayments go? It’s actually a function of the concept of serviceability. If you’re trying to understand serviceability, think of it as a structure that helps define how likely it is that a person will pay back a loan. If a person is very unlikely to have the resources to be able to repay this money, then it is in the best interest of the loaning company not to accept the application.
Different Methods of Electronic Money Transfer
When paying via electronic methods, there are several different ways to approach the financial movement. You can pay through a service like PayPal. Or, there are electronic checks or direct debits from bank accounts. Credit cards and debit cards are also in the mix. It is important to note that some styles of repayment come with specific fees. Don’t let these get lost in the shuffle depending on if you are doing the repaying or expect payment for a good or service. Recognize what these rates are and how they change depending on your business requirements.
Coupons and Discounts
When using coupons or discounts for electronic transfers, you want to market for the most efficient transactions possible. People like giving discounts. They like using coupons. Whatever you have set up, you need to make it as easy as possible for them to start and finish their transactions. People generally recognize that high prices mean things are good, and then add coupons and discounts to that, and it’s even a better deal.
Penalties for Late Payments
When you send out an invoice, you generally expect payment within a specific range of time. If you don’t get money within that range, after 30 days, for example, then you can institute something like a late fee. You should make sure that you are contractually secure with representing what these fees are and why they are in place. For income and expenses to match up, payments and repayments have to happen within a specific window. It is up to you as a business owner to market this concept appropriately in your sales management team efforts.