GPI 352 – Call the new customers’ AP person before you set them up for ordering. Talk to the person who will pay you.

You will never have as much leverage with a customer as you do when you initially set them up in your billing system. Prior to entering the new company to place purchase orders, ask to speak to the client’s AP person. Talk to them directly on the telephone and tell them you want to follow their procedures so your invoices are paid on time.

Ask for all contact information first. Find out the contact’s telephone number, fax number, their email address, a company inquiry email address to be used and any other pertinent information that ensures your invoices will be paid on time. Do not wait until the invoice is due.  Speak with the AP person prior to setting up the new customer for an order.

Ask what issues hold up payments.   Ask the person on the telephone what things hold up payments.

  • Do they require a purchase order?
  • Do they use an invoicing portal and if so, who sets you up as a user on the system in order to bill them? Who do you call if you are unable to use the portal?
  • It takes three days to complete your invoicing.  Does the portal allow you to backdate the invoice (date of delivery) or not?
  • Are there dollar limits on their purchase orders?
  • Do they cut checks only once per month? Twice a month?  Weekly?
  • What payment terms do they follow? Do they stick to the terms on the purchase order (if there terms written there)?
  • If you have Net 30 day terms, when you can you expect to be paid your first check.
  • Ask your AP contact, what prevents your deliveries from being paid and held up for payment in their syste? What causes them to put your company on payment hold.
  • Ask these questions now before the first invoice is due.  Ask it now to get paid on time.

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