Payment Receival system before Full and final delivery
B2B service Business deals nowadays in India does not run on trust alone …If a client has checked your portfolio, samples and agreed to give you a project ….you , whether you are a msme owner, businessman,entrpreneur or a freelancer should know how to impose a confirmed payment receival system without delivering your full and final services before receiving payment from your client. If the work is completed with a portion shared…then there is no shame or a sign of less gratitude, if you ask your client to clear your payments Before full and final delivery, inspite of their urgent requirement..they should posses similar urgent payment disbursal method as per their project requirement on urgent basis…
Contrary to this, if you want to take high risk of delivering without payments being cleared.then you will always fall in lollypop vendor category in their diary, receiving only cynical smiles and false promises from them … Creating negative cash flow and low control over yourself…and ultimately resulting in low self esteem, poor health and low growth of your concern.Timely payment will help to keep the cash flow in the company stable and ensure that the company is able to meet its ultimate goal of exporting,delivering their product. The flow statement can be used to help track the progress of a shipment/delivery and to keep track of the appropriate payment method.
A written document or email or even a whatsapp message of promising payment is needed before execution of projects.
Think from your Pov (point of view)…do you buy daily groceries in credit from market..if the answer is no ….then you cant afford to get loose of your payment before delivery…if the answer is yes..then you can take the extended risk.
Applying this system gives you the freedom to acquire any clients from around the world..not just past or referral client. When in doubt, always err on the side of caution and wait until you have received full payment before continuing work. This will help ensure that both you and your client are happy with the final product. Any person or organisation should make full and final delivery only after full and final payment is received from clients, in order to ensure that the requester’s accounts payable are properly billed and that the delivery issue is resolved.
If you experience additional delays in receiving payment, please contact your client to discuss an additional charge or extra manpower to help speed up the project.
If you have not received payment from your client by the last working day, you may want to contact them to see if they are able to pay you in a more timely manner. If you have not received a response from your client after numerous attempts to contact them, it is probably best to terminate the contract and move on.
The risk can be only taken, if the project is done as per Signed work/purchase order from the client.
If its a case of an employee, who has not been paid in a past several months, it would be important to track down their salary records in order to determine how much they are owed. This information can be found in payroll records. Once the amount of unpaid wages is known, the employee can take appropriate action such as contacting the employer or filing a lawsuit. If an employee’s salary is not recorded in payroll records, the company will have to estimate the amount of unpaid wages using other information such as total hours worked and employee wages.