Cash in King. It can make or break a business. Here are 5 ways to improve your cashflow
- Invoice of day of delivery / completion. Don't wait until the end of the week or month. Invoice today. Payment terms are based on invoice date so the earlier an invoice is issued, the earlier payment is due.
- Pro-actively request payment - If a client is notoriously poor at paying (or even if they pay on-time) give clients a call a week before payment is due to confirm the payment date. It serves as a little reminder that the invoice is due and they are less likely to delay.
- Implement Payment Process - Hold clients to their payment terms and implement a process to chase outstanding payments from the first day a payment becomes due. Don't wait another 30 days until you chase. Start the process immediately.
- Issue demand letters - If the payment is 7 days overdue, start issuing demand letters.
- Withhold future supplies - If an invoice remains outstanding, then delay future deliveries until outstanding invoice is paid.