Post by account_disabled on Mar 7, 2024 1:28:34 GMT -5
The key component of success. You need to send out an invoice immediately after youve supplied the goods and include all the necessary information especially payment terms such as what late fees and interest youll charge and a prominent due date. Sending out accurate invoices as early as possible is a straightforward way of improving a businesss cash flow. QuickBooks the accounting software mentioned earlier includes an invoicing function or you could try an online service like FreshBooks or Invoicely. B. Contact LatePaying Customers.
Van be tricky because you want to have good relationships with your Country Email List clients. But if a payment is due its best to be polite but firm. Send a new invoice including late fees and interest. Call and check that the invoice was received and . Keep a friendly tone but dont hang up until you get an agreed payment date which you can then confirm by email or in writing. C. Renegotiate Payment Terms Ideally you want to negotiate payment terms with your customers that are at least equal to and preferably shorter than those you have with your suppliers. For example if you have to settle your bills within days you want your customers to pay within days too or perhaps even less.
You certainly dont want to be making payments within days and receiving them in days. It can be tricky for small businesses especially when dealing with larger companies that have a stronger bargaining position. But you can start by being clear about what your terms are and paying attention to the wording of contracts and invoices. Theres some helpful advice on payment terms in this UK government fact sheet. Advertisement Slow Down the Outflows As well as making payments come in more quickly another way to maximize your cash flow is to slow down the outflows. Here are some options A. Delay Investments If your business is doing well its tempting to invest.
Van be tricky because you want to have good relationships with your Country Email List clients. But if a payment is due its best to be polite but firm. Send a new invoice including late fees and interest. Call and check that the invoice was received and . Keep a friendly tone but dont hang up until you get an agreed payment date which you can then confirm by email or in writing. C. Renegotiate Payment Terms Ideally you want to negotiate payment terms with your customers that are at least equal to and preferably shorter than those you have with your suppliers. For example if you have to settle your bills within days you want your customers to pay within days too or perhaps even less.
You certainly dont want to be making payments within days and receiving them in days. It can be tricky for small businesses especially when dealing with larger companies that have a stronger bargaining position. But you can start by being clear about what your terms are and paying attention to the wording of contracts and invoices. Theres some helpful advice on payment terms in this UK government fact sheet. Advertisement Slow Down the Outflows As well as making payments come in more quickly another way to maximize your cash flow is to slow down the outflows. Here are some options A. Delay Investments If your business is doing well its tempting to invest.