Cheque is in the mail....

Rarely would any sales person ever think that a sale could be a bad thing. You are paid to generate orders! Most companies have finance departments that handle opening the accounting. It is the job of the sales person to secure the deal.

Each and every new account opening comes with a price. The cost of making the sale might be minimal, but there is a cost associated with processing a new account. Checking credit information is normally sourced to the third party company, as well as the accounting clerk that is involved in setting credit limits, finalizing the paper work, and following up on payments .

The problem arises when sales people are simply looking to sell at all costs, whether it is a new account or an existing account. As long as a sale is made the sales person will then expect the accounting information to be dealt with. Too often long after the sale has been made, the sales person finds that the accounting or finance department will not release the order, likely due to over due payments or not paying prior invoices on time.

As a sales person, make it a rule to stop by the credit or accounting department when in the head office of your company and inquire as to the credit standing of your accounts. The folks in accounting will welcome the company and appreciate you are trying to help them out by finding out if one of you accounts is a chronic late payer.

If you do find out you have an account that is always paying after their terms. Bring it up during your next meeting casually. Don’t barge in and say, “You gotta start paying your bills on time!” that will likely end your relationship with that customer.

Instead try, “it has been brought to my attention that, some of your orders have been held in the past until the account has been paid. Is there anything we can do to help this situation?” Offer to look into solutions like extending the terms. Do not promise anything as this is not your area of knowledge. Many times by tactfully raising the issue you are telling your customer that you would like them to start paying on time. Just don’t say that.

As a good sales person you are a business partner to your customer and an ally of your employer. You need to be aware of what accounts pay on time and which ones don’t. Imagine your company tied paying you your salary and/or commission to when they got paid. I am sure you would be more interested in making sure your customers were paying on time.