For some businesses, it is always demanded that the customer has to pay before he or she would be served. That is the modus operandi for some specific service based businesses. Do you practice this mode of operation that customers have to make payment before they get served?
Does your business operate on Pay Before Service?
- Thread starter Kross
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Yes when i start my business it would be on pay before service. Selling on credit do kill businesses
My poultry business runs on pay as you are served. My live band requires a client to pay a significant advanced payment to get served.
eLdavis
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Yes my graphic design business works on pay before service, or at least pay a certain amount so we can start processing your work. There have been cases of people refusing to pay after we have wasted time on their job.
With pay before service comes better cash flow, service providers may need to borrow less money, reducing interest costs.
Upfront payment can help identify and prevent fraudulent transactions.
Upfront payment can help identify and prevent fraudulent transactions.
Most businesses always operate on a pay before service. It is what it is to make sure they get paid promptly
Payment before service minimizes the risk of the client defaulting on payment after the work is completed. it simplifies the accounting process, as invoices are less likely to require follow-up for payment.
The business I run does not require upfront payment, but after the product is consumed, there are indeed some types of businesses that require upfront payment such as concert tickets, football, airplane tickets, etc.
This makes it easy for clients to pay, businesses can foster stronger, more lasting relationships with this
