How to make sure your business gets paid on time
Late payments from your customers can really hurt your business cash flow. It can mean that you won’t have the funds to pay your own bills on time, which can hurt your credit score. This in turn can make it harder for your business to get finance to help you grow.
Here are some strategies you can implement to make sure your business gets paid on time.
1. Tighten up your payment terms
If you offer your customers credit (for example, 30 or 60-day accounts), you can tighten up these terms by reducing the number of days your clients have to pay you. This will help to ensure you get paid faster.
You could also add in an interest charge to your terms if you are not paid on time.
2. Make it easier for your customers to pay you
Give your customers a range of payment options, including cash, EFTPOS, BPAY, PayPal and Afterpay. This will make it easier for them to pay you on time.
3. Automate your invoicing and payment reminder notices
Implementing bookkeeping software can help you to automatically send customer invoices and payment reminders. And if your customer is ignoring email or text reminders, pick up the phone and call them. If you ever have trouble getting paid by a customer, think twice about extending them any credit again.
How we can help
We can also provide your business with cost-effective bookkeeping support services. We service a diverse range of clients in Victoria, South Australia and New South Wales.
Contact us today for a free, no-obligation consultation to find out how we can help your small business!