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Allowing Your Customers to Delay Payments is Bad for Business

Written by:
Taylor Marsden
Published on:
September 20, 2019

When it comes to client relationships, having consistently positive, healthy and amicable interactions are at the forefront of everyone’s mind. But when money creeps into the conversation, things can get a little tricky. It’s never an easy subject to broach. Having to constantly chase late payments puts a strain on any client relationship, and the longer this goes on, the more awkward everything becomes. 

According to a survey carried out by Sage, over 30% of SMEs experience the negative impacts of late payments – and an average of 15 days a year are wasted chasing these down. Unsurprisingly, over 30% of these businesses admit that they prioritize protecting an invaluable client relationship over chasing unpaid invoices.

If building a loyal, long-lasting customer relationship is crucial then it’s understandable that many would prefer to chase late payments rather than take more drastic action.

But running after unpaid invoices is an unsustainable option in the long run. In Sage’s survey, they discovered that almost 10% of invoices end up unpaid or written off entirely.

Ultimately, allowing clients to delay payments is bad for business. 

Providing financing options to your customers allows them to pay off their invoices instantly while custom repayment terms help them pay later when cash flow in their business comfortably allows it. 

Stay on top of schedule

Financing options like those offered by Ario are beneficial for both parties when it comes to timing. It takes the guesswork out of waiting for payments to come in – your clients are able to immediately pay off what they owe and repay back the loan over a duration that suits them. 

Each month becomes much more reliable and stable, allowing you to plan ahead more accurately. 

Keep cash flowing

Smart financing helps keep your own cash flow healthy, too. When you’re left constantly chasing late payments, the months can become unpredictable. A couple of unpaid invoices can leave you struggling in other areas of your business, playing a frustrating waiting game and potentially causing you to fall behind. 

By offering other options to your customers you can break this chain and allow each business to move at their own pace, extending payments where needed without the repercussions of leaving anyone unpaid.

Make awkward conversation a thing of the past

One of the most vital things that a service like Ario facilitates is maintaining your all-important customer relationships. Owed money is never easy to discuss, and can sometimes feel like the elephant in the room (or the inbox). Financing eliminates any need for those nail-bitingly awkward conversations each month. Any correspondence about payments is made much more straightforward and simple, strengthening your relationship with clients by allowing your interactions to flow easily. 

Beat them to it

Help your customers avoid late payments by offering a helping hand before their invoice is overdue. Finance tools can help build a sense of loyalty, honesty and trust between yourself and your customers, and sets you ahead of any competitors who don’t offer the same kind of aid. 

Make money matters easier

There are better options out there than allowing customers to delay payments. From invoicing to lending, Ario helps make the financial aspects of running your business a whole lot more straightforward and streamlined. 

Start getting paid now! Book your Ario platform demo today.


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When it comes to client relationships, having consistently positive, healthy and amicable interactions are at the forefront of everyone’s mind. But when money creeps into the conversation, things can get a little tricky.

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