A chronic complaint among small business owners is the length of time it takes to get paid. Unless you are an all cash business, then there's usually no way around the task of sending out invoices and waiting for your customers to remit their payments. At Corporate Business Solutions, our experts know how vitally important maintaining and controlling your cash flow and receivables is, and how delicate a balancing act it can be.
To get a handle on the situation, your small business expert will look at your historical billing patterns to understand how it affects your cash flow. By understanding this, adjustments can be made to increase, decrease or eliminate any discounts you may offer. So for example, the standard 2/10 net 30, may become 1/15 net 30, or some other iteration. It may take testing the discount over a period of time to find the optimal fit, but with the proper analysis going in, this time frame can be reduced.
Another solution maybe to change your remittance acceptance methods. The old days of waiting by the mailbox for a customer's check have gone the way of the horse and buggy. Today there are many different ways to collect from your customers including credit/debit cards, EFT payments, even PayPal. On the front end, many businesses will accept your invoices electronically speeding the processing time. Of course it is important for you to make sure your customer has all the proper information to process your invoice quickly. These things include making sure they have your proper name and address, a current and completely filled out W-9 and the right account numbers if payment is being automatically deposited.
In those cases where a customer is just a chronically late payer, then other factors may be considered like adjusting their pricing policy, or limiting the amount of credit they are allowed. Or if the customer is causing other issues like a high demand of customer service, or sales management time, then it may be a possible solution to just cut the customer off.
Corporate Business Solutions has the expertise to understand how all of these factors affect your business. Call today for a confidential interview with one of small business experts to start getting control of your receivables.
To get a handle on the situation, your small business expert will look at your historical billing patterns to understand how it affects your cash flow. By understanding this, adjustments can be made to increase, decrease or eliminate any discounts you may offer. So for example, the standard 2/10 net 30, may become 1/15 net 30, or some other iteration. It may take testing the discount over a period of time to find the optimal fit, but with the proper analysis going in, this time frame can be reduced.
Another solution maybe to change your remittance acceptance methods. The old days of waiting by the mailbox for a customer's check have gone the way of the horse and buggy. Today there are many different ways to collect from your customers including credit/debit cards, EFT payments, even PayPal. On the front end, many businesses will accept your invoices electronically speeding the processing time. Of course it is important for you to make sure your customer has all the proper information to process your invoice quickly. These things include making sure they have your proper name and address, a current and completely filled out W-9 and the right account numbers if payment is being automatically deposited.
In those cases where a customer is just a chronically late payer, then other factors may be considered like adjusting their pricing policy, or limiting the amount of credit they are allowed. Or if the customer is causing other issues like a high demand of customer service, or sales management time, then it may be a possible solution to just cut the customer off.
Corporate Business Solutions has the expertise to understand how all of these factors affect your business. Call today for a confidential interview with one of small business experts to start getting control of your receivables.