Do you struggle getting paid quickly? It’s a challenge for every business.
There are many stories of profitable businesses that went bust because they had cash flow issues. Since they weren’t getting paid quickly, their expenses and payments to their suppliers would outpace the cash coming in from their customers.
Many entrepreneurs and small and medium business (SMB) managers know the saying “cash is king”.
Cash in hand is essential for the running of a business, so the more you are able to get paid quickly the more you can have your cash working for you.
Here are 5 Tips for Getting Paid Quickly:
Invoice a job as soon as possible
Invoice your customers when a job is done or item is shipped instead of waiting until the end of the month.
Require down-payments or phased payments
By not waiting for payments at the end of the entire service or product delivery.
Send invoices by email
Instead of sending by post and if the client requires an original invoice, then send it following the email by express courier.
Accept Credit Card Payments
Which would allow you to collect funds immediately from the client when they purchase your product or service.
Offer a discount for early payments
Instead of giving a discount to the client on the selling price offer the discount if they pay early.
Getting cash into your business as soon as possible and holding on it as long as possible are essential elements of good cash flow management.