How to speed up your cash flow?
When you need cash fast for your company, you know that you do not have too many options. Either you use your personal savings, or you get a loan. But you should analyse the situation to understand how you got there. What caused this lack of money in your company? In the majority of cases business managers deal with debtors, and they are not able to recover their money in time, so they began having financial issues. If you find yourself in this situation, you should get in touch with one of the companies that do credit control in London, because they will offer you, assistance and help. But there a few things you can do to speed up cash flow, so you should take a look and see if you can use some of them.
You can change the invoice timing
When working in this domain you hear a new excuse every day, on why the invoices cannot go out the door. The main reason you find yourself in this situation is that expenses occurred before clients covering with sale. So if it is possible you should match the timing of expense payments with the one of the invoice collection. Make sure that the invoices get to the client as quick as the sale is made.
Change some of the invoice terms
You should make sure that you get paid as soon as the invoice is out the door. You might have opted for long payment terms, as 30 days of the invoice date, and this is not beneficial for your company. But you can change the terms, and you can offer your clients discounts in case they pay before the 30 days term. You should set the terms in such a way to get your invoices paid quickly. It is recommended to opt for the due upon receipt term, because it will ensure that you will get your money fast.
Facilitate multiple payment methods
Customers will pay faster if you offer them an easy option. People are quite busy nowadays, so if you offer them a quick solution, they will not be late to send you the payment. You should send the invoice via email and offer them step-by-step instructions, on how they can pay. You should use different payment options, to offer different types of customers the possibility to opt for the option that suits them better. Online payment is an option that will boost the payment speed.