by admin | Apr 3, 2016 | Cash Flow Advice
1. Put your payment terms in writing If you don’t have a payment policy in place set one up and if you do have a payment policy make sure you’ve communicated it with customers. You can’t hold customers accountable to payment terms if you’ve not communicated them. Use documents such as contracts and invoices to clarify payment terms and avoid customer confusion. 2. Invoice quickly and upfront where possible Regardless of your payment terms The clock only starts ticking when you issue your invoice so don’t put invoicing to bottom of the pile once you’re able to request payment. If you’re just starting out or taking on a big order ask whether you can invoice upfront for the work. Even invoicing for a percentage of the work upfront can be enough to ensure the timely flow of cash into your business. 3. Clarify customer invoicing processes If you’re dealing with a large business, spend time upfront to understand their invoicing processes and requirements. Most large businesses require a purchase order request before they will pay your invoice so request this before you start work. If you’re working with a large business for the first time it’s also worth clarifying what’s required to get set-up as a verified vendor so you don’t waste time doing that after you’ve delivered your product or service. 4. Make it easy for customers to pay It might sound obvious but the easier you make it for customers to pay you the more likely they will. If you’re using an Online Software Program you can offer customers a ‘Pay Now’ option on invoices shared electronically...
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