Keeping clients happy is an important part of helping a company thrive. Another key element is properly managing your cash flow.
When you provide products or services to clients and customers, they should pay your company in a timely and efficient manner. Otherwise, you’ll spend precious time chasing invoices, sending reminders, calculating late fees and more.
Did you know that QuickBooks stats say that the average payment time for an invoice is 60 days?
Struggling with cash flow isn’t only a headache. It can have a slew of other implications for your business, including a decreased credit score, stunted growth or even the inability to operate.
If you feel like your company is struggling with cash flow, or you want to improve the process of bringing money in, here are some helpful steps you can take.
Require Down Payments
Maybe you don’t expect clients to pay you in full right away. But start getting the cash flow process going by requiring down payments on products. Down payments can help finance the work you do, so you don’t have to use money from your own pockets.
Set Up a Line of Credit
In case you’re short on cash, ensure you have a line of credit set up with a bank. That way, you can still operate when you’re short on cash, then cover your debt with cash once it comes in.
Offer Incentives for Early Payment
Encourage customers to pay in a timely manner by offering them incentives. You could consider offering them free goods, or even a small discount on your products or services.
Accept Many Payment Types
If you want your clients to pay in a timely manner, make sure you accept multiple payment types. This includes cash, check, credit card, debit card, Peer to Peer payment platforms such as Venmo, Squarecash, Paypal and more. By accepting a variety of payment types, you can make paying convenient for customers, upping the chances they’ll do it as quickly as possible.
Use Late Fee Manager to Automate the Process
Let your clients know that there is a late fee if they don’t pay you on time. Late Fee Manager is a software solution that automates payment reminders and then charges late fees on its own. That way, you don’t have to do extra calculating or uncomfortable communicating.
If you want to improve your company’s cash flow, consider using Late Fee Manager. Not only will you help ensure that you don’t have to spend extra time doing unnecessary administrative chores, you can also be certain that you get paid on time — and that you get paid more, so your business can continue to thrive.