by Marjolyn

You’ve taken the step and started a great business. So, how do you get your customers to pay you on time to keep the cash flow cycle humming? Here is a list of suggestions that will assist in keeping the cash flowing into your accounts so your business can continue to run smoothly!

 

  1. Start with the right information. Clients won’t be able to argue paying if you’ve double checked the entity details such as the use of a new client form signed by both parties.
  2. Clearly communicate and agree upon trading terms upfront, ie when setting up a new client include your trading terms on the form, discuss this with them and ask them to sign in agreement/acknowledgement before progressing with services/goods agreement.
  3. If a customer suggests that you Invoice their Family Trust, remember to address it to the Trustee of the
    Family Trust, or you could be walking into a big headache if you try to recover from a trust .
  4. Delegate debt responsibility to a particular team member. This person is happygirl100% responsible and not the director who may do his client ‘friend’ a favour by offering different trading terms.
  5. Send timely and regular statements. (Xero allows you to send out a statement to every customer with outstanding invoices with ease and great efficiency). We suggest a courtesy follow up phone call with potentially slow-paying clients to ensure they’ve received it.
  6. Set up monthly direct debits options where payments are automatically charged for clients on fixed fees or a regular commitment
  7. Get specialist help – a debt collector service or agency! Some will only charge you a % based on amounts received. So no win no cost to you. Debtor Daddy is a simple yet effective way to assist with email reminders for your debtors. It also has a relationship with a debt collection company who can take on the debt after a certain point and will only charge you a percentage of the invoice amount on receipt.

For more information or if you would like to discuss some options to help your business contact Team EASE today.