How to Get Oilfield Clients to Pay Invoices on Time

One way to ensure you have the cash flow you need is to work to ensure your clients pay your invoices on time. It is very possible for reputable companies that have been in business for a long time to find themselves filing for bankruptcy because they lack cash flow. In fact, look at Wal-Mart. It is laying off 10 percent of its workforce.

You can convince your oil field services clients to pay their bills without uncomfortable strong-arm tactics. Of course, you don't want to put your relationship in jeopardy especially since it is cheaper to retain current customers than to find new ones. Even businesses that do a lot of one-time deals still need to make an effort to make the client as happy as possible and remain in their good graces. They can talk to other businesses about you. You want them to say good things, so strong-arm tactics won't work well.

The way to go is to be honest and personal. Either you or someone in a higher up position calls the customers explaining that you need their invoices paid or else your business suffers. Go on to tell them they're important to you and your business and that you very much would like to continue providing them with high quality oil field services. Receiving late payments affects the quality.

Executives and managers need to make time to take care of customers. Should they not have the time, at least have them call the more important and long-time clients. Some customers may be surprised and delighted that someone high up in the company cares enough to call them. This action will make the relationship stronger, build trust and improve your credibility.

You can also consider offering customers with more payment options. Consider credit card, wire services and online transfers. These options help you collect fast payment. For some customers, wire transfers can be a more viable option, which is win-win for you both.

Some clients think they can take their time in paying invoices. Those personal calls or visits can help in this situation. Take an honest, direct and caring approach in discussing the situation while pointing out how customers benefit when they pay on schedule.

Reports say that businesses have had success in reducing late payments from 25% to below 10% with the personal approach and adding payment options. If you're still uncomfortable with all of this, it may be worth the time and investment to work with a financial organization that collects past due bills. These companies do this all the time, so they might be able to do it faster while keeping your relationship intact. Furthermore, letting an oilfield financial services organization chase down payments gives you more time to spend on oil field services, what you do best.