Blog

Cash flow is a prominent subject on most small business websites and for good reason.  All businesses need a healthy supply of money to survive, but this is particularly true for small businesses since many of them depend on the loyalty of regular customers to stay open.  One of the most common causes of cash flow problems is unpaid invoices.

Some people think that unpaid invoices are inevitable and that little can be done to correct the problem but that isn’t true.  If your business is struggling with this issue, there are steps you can take to ensure your invoices are paid promptly.

 

Most small business websites emphasize this point because many managers neglect it, despite it being so important.  If you want customers to pay their invoices on time, you need to send them out quickly.  The sooner your clients have them, the sooner they can make a payment.
Once you have sent out an invoice, make sure you have a system in place to follow it up as that can limit the number of invoices that are overdue.  Send out reminders to ensure that your customers understand the significance of paying their bills.

 

Sending invoices to your customers in a timely manner isn’t enough.  Make sure that the invoices reach the right people, specifically the people who are responsible for making payments.  Do not assume that the people who have used your products and services are also responsible for clearing overdue invoices.

 

Today, you need to make it possible for customers to have as many options as possible when it comes to making payments.  The most popular form is an electronic means because they are convenient.  When payment options are easy, it increases the possibility of payments being made faster.
If an invoice is overdue, take steps to confirm that relevant parties have settled their debt.  Businesses with amazing sales figures collapse all the time because of cash flow problems so follow these tips for your business to prosper!