Horse business owners—and, indeed, all entrepreneurs—frequently have to deal with unpaid bills. Whether it’s for riding lessons or horse training or boarding or something else entirely, customers who fail to pay (or pay late) can destroy your business.
Your job, therefore, is to conquer the unpleasant task of collecting payment. Demanding money from your clients might leave a sour taste in your mouth, but here are a few ways to make it easier.
Make Paying Easy
One of the major obstacles horse business owners can obliterate is the difficulty of actually making payments. If it’s difficult for your clients to deliver checks or cash to your hand, they’ll be less likely to pay on time.
Set up a locked box with a slit in the top where clients can deposit their checks. It should be kept in a relatively secure location—such as the tack room—and emptied regularly to discourage would-be thieves.
But if your clients know where they can put their payment without any hassle, you’ll have far fewer unpaid bills. You can also provide other options, such as:
- Paying by credit card on your web site (PayPal is an easy way to accept payments)
- Mailing payment to your P.O. box
- Scanning credit cards on a terminal at your barn (will require a merchant account and necessary hardware)
- Handing you cash
Send Reminder Notices
In addition to mailing invoices to your clients to let them know what they owe, send out friendly reminder notices a few days before payment is due. This way, if your client set aside the invoice and forgot about it, you can jog their memory.
If you want to save money on postage, consider sending our reminder notices by e-mail. This is just as effective at battling unpaid bills, and you won’t have to pony up money to accomplish it.
Establish a Schedule
People find it easier to pay their bills when they know exactly when the next one is due. This is part of the reason why you receive bills for your electricity, water, cable and other utilities at the same time every month.
Riding instructors can charge for lessons in bulk, one month at a time. If payment is always due on the 1st (or the 15th, or whatever) there are never any surprises. The same goes for other equestrian professionals.
Enforce Late Fees
Telling your clients that they will incur late fees for unpaid bills is not enough. You have to actually charge those late fees when clients don’t pay.
You might be willing to waive a late fee every now and again for extreme circumstances (such as the death of a loved one), but you must be consistent. Not only does it send the wrong message, but waiving late fees all the time can give your clients legal permission not to pay them in the future.
Ask For It
Most horse business owners see their clients on a regular basis. This is where you have an advantage over the cable company and Macy’s department store.
Keep an “unpaid bill” list in your pocket that provides all the names of clients who haven’t sent you a check. When you see them at the barn, remind them you haven’t received payment and ask when you can expect it.
So what about you? Do you have any foolproof methods for dealing with unpaid invoices? If so, share them with the rest of us in the comments section.
You might also like:
- The Horse Business Guide to
Getting Paid - How to Structure a
Horse Business Payment Policy - Farm Freebies: Payment History template
- Five Easy Tips for Managing
Finances in the Horse Business - Farm Freebies:
Payment Record template
About the Author: Laura Jane Thompson is the Chief Equestrian Officer of Riding Instructor University and the Feature writer for the horses section at Suite101. She believes that any horse business can succeed provided its owner practices smart strategy.
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