Article | June 23, 2023

Set New Client Payment Expectations The Right Way: During The Sale

Source: ConnectBooster
GettyImages-1392016982 work meeting

One of the biggest struggles for new MSPs is creating an efficient process for getting paid in a timely fashion for the work they perform.

Whether billing a client after completing a project or sending out invoices every month as part of a recurring service offering, without effective policies and processes in place, accounts receivable balances can skyrocket in just a few months. No one needs those collections nightmares, particularly MSPs trying to gain a footing and expand operations, and without dependable cash flow, their short and long-term objectives could remain well out of grasp.

Payment expectations may be one of the least mentioned yet most critical topics that every provider’s sales team should bring up before closing a new business deal. That conversation sets the proper tone for the financial side of the client/MSP relationship by helping minimize the confusion over invoicing and payments. Sharing the “ground rules” and the process, including methods, timelines, tools, and agreeing on specific terms, can prevent problems in the weeks and months ahead.

What is the process? When will a new client receive the first and subsequent invoices and when and how should they make payments? Many businesses fail to answer those questions until long after their sales teams close a new deal, and the customer gets the first bill. In some cases, those conversations happen only when the person who handles collections calls to check on an overdue invoice—not an optimal time nor the most comfortable of discussions for MSPs or their clients. That situation can be awkward and set the wrong tone for a professional business relationship.

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