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5 ways to improve payment of invoices

Cash in King. It can make or break a business. Here are 5 ways to improve your cashflow

  1. 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.
  2. 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.
  3. 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. 
  4. Issue demand letters - If the payment is 7 days overdue, start issuing demand letters. 
  5. Withhold future supplies - If an invoice remains outstanding, then delay future deliveries until outstanding invoice is paid.