Are you tired of thinking ‘am I going to get paid today?’ Is your lack of cash affecting your business or your company credit report? Not getting paid can lead to your business having money problems, so it is crucial to maintain a healthy cash flow in order to run a good business.
Here are our 5 top tips on how to ensure you’re getting paid on time!
Get invoices accurate the first time and send them in a timely manner.
Nothing will slow a process down more than having errors on an invoice. Try to avoid that by getting invoices paid as efficiently as you can. By keeping on top of your bills and sending them out in a timely manner your customers should be ready to pay when the debt is due. Build up a routine of sending out invoices at the same time every month and this will improve your cash flow management and keep you organised. Your regular customers will also start to learn when their payment to you is due and hopefully get into a routine themselves.
Set realistic timescales in advance and offer incentives for paying early.
When you enter into business, set a realistic timescale at the beginning; stating clearly to your customer when you need to get paid. It’s always best to get contracts in writing so you can refer back to it if any problems occur- never do business on a handshake. You could also offer a discount to your customers if you’re paid early, or offer them special deals. This helps ensure that your bills are paid on time, allowing you to then in turn pay your bills on time, meaning your cash flow and credit rating will remain steady.
Monitor your customers.
By keeping an eye on your customers, you’re more likely to spot if trouble is coming your way. A lot of our Creditsafe customers benefit from a tool we created called Risk Tracker. Risk Tracker allows you to choose companies you wish to follow, and instead of you checking each individual credit report regularly, we send you an email if a company’s status changes.
Offer many payment channels.
By opening many payment channels and giving your customers more ways to pay you it’s more likely that they will. By offering channels such as paying over the phone, in store/person and online, it gives your customers fewer excuses as to why they aren’t paying you. Make it as easy as you possibly can for your customers to pay you and you’re more inclined to get paid on time. Investing in online payment systems will benefit your business massively, and by offering different ways to pay such as credit card, pay pal, debit card etc. makes it easier to get paid online.
Encourage standing orders.
By encouraging your customers to set up standing orders, it’s creating fewer steps for them to take when needing to pay you and will also create a regular payment pattern that automatically comes out of the bank. This leaves little work on their part when it comes to paying you, making it more likely they will pay you.