Creditors’ Rights 13: Payment Terms
Q: How can I get my salespeople to also think about payment terms instead of just about making the sale?
A: In our work as creditors’ rights attorneys, we have found that many companies actually create a culture conducive to receiving timely payments. In the same way you would instruct your salespeople to be knowledgeable about your products or services, you must also emphasize to them that a sale is not a sale until your company gets paid. You can also help your salespeople by making sure all sales agreements and contracts protect your rights as a creditor and reflect changes in the laws that might affect your ability to collect should it come to a legal situation. For instance, you may want to update your contracts to include interest on late payments. The bottom line is this: don’t think of payment and collection as an afterthought but as a crucial part of the sales process.