Making money for your business and getting a big sale is pretty exciting. It is something that you will have set up the business for, and is what will help you to get it to where you want it to be. However, getting paid as a small business can be tricky. There can be late payments, meaning you need to chase missing invoices, as well as having to spend time and money and effort getting in contact with people who still owe you. You could even not get paid at all, and cash flow problems are one of the reasons why a number of businesses actually fail.
If you use a B2B model in your business, then the chances are that your customers are going to have particular payment terms. So before you start out doing any selling, it is a must to have some clear policies so that you can ensure payment, promptly and on-time. It can be hard to walk away from a sale, but you need to look after the potential of your business. So here are some things to think about, to ensure swift payments and better cash flow for your business.
Create policies
It is a must to have some defined policies right from the start. What kind of credit collections will be in place if payments aren’t made? You need to know all of this before you offer credit or allow people to pay you after the service has been completed. You should also think about how much credit you can give without it impacting your cash flow, as well as putting into place the payment terms that you want to set for anything that is overdue.
Automation
When it comes to getting paid, and getting paid by a certain date, you need to make sure that you are getting your invoices out on time. This can be difficult when you’re doing it yourselves, as there are a number of other things that can take up your time as you run a business. Automation in any business, but particularly for something like invoicing, can be a great idea. When the invoices will just get sent out on a certain date, using something like OnPay Solutions, you don’t have to worry about them not being done on time. Then you are more likely to be paid on time, and it will carry on like that.
Communicate your policies
When you get a new customer or a new business looking to use your services, then you need to lay out a clear statement with all of your business payment terms and conditions. This is something that should be clear on all invoices, as well as any contracts that you have with customers or clients. The things to state are penalties for late payments, as well as making sure that follow through with the charges if it comes to it. They can’t complain about it if they have had the policies and fees communicated clearly to them.
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