To maintain a healthy organisation, you need to keep the cash flowing, and that means billing customers and collecting the cash you're owed in a timely fashion. Unfortunately, that's sometimes easier said than done.
Having outstanding debts can be a major hindrance to running a successful business.
Does your company have a problem with invoices that are going unpaid? These outstanding debts can be a major hindrance to running a successful business. Without collecting money quickly, you risk being unable to pay your employees or meet other basic financial needs. How can you turn those invoices into faster cash?
Improving your invoicing system
If your business has an ongoing problem with unpaid invoices, the solution might be to revamp your invoicing system and cut down on non-payments, according to the Department of Industry, Innovation and Science. This process should begin with writing invoices that are easy to understand - it should be stated in no uncertain terms how much each client owes and when the amounts are due.
The most important part of staying on top of your accounts is establishing expectations surrounding payment. If your customers know what's expected of them and agree to it from the start, it should be easier to follow through and collect your cash when it's due.
Understanding people's pain points
Even if you do everything in your power to smooth out the invoicing process, difficulties still arise sometime. Customers have various pain points. For example, they might quibble over acceptable forms of payment, such as cheques or credit cards, or they might have currency conversion problems if they're international. Deadlines might put them into a time crunch.
Try to understand the pain points your customers are dealing with.
Whatever problems your customers might have, it's important to listen to them and understand where they're coming from. If you can address their financial concerns and still get paid on time, great; if not, you may need to explore alternative finance solutions.
Getting quick capital when you need it
In business, money is no good if it's tied up in your debtors' books. You don't need the promise of money; you need actual working capital. At Earlypay, we're committed to helping you get it.
We offer debtor finance solutions that allow you to have quick access to cash when you need it. If you have accounts receivable but you're not getting paid, reach out to us and ask for help. We'll deliver.
If you'd like to learn how Earlypay's Invoice Finance & Equipment Finance can help you boost your working capital to fund growth or keep on top of day-to-day operations of your business, contact Earlypay's helpful team today on 1300 760 205, visit our sign-up form or contact [email protected].