Unfortunately, the old boring business principle still holds true ‘Cashflow is King’. Small & medium sized companies (SME) face a very difficult dilemma between maintaining good relationships with their clients and at the same time managing their cashflow.
Steps to help reduce the percentage of late payers:
– Clearly define your payment terms with credit terms
– Invoice as soon as the work is done
– Be taken seriously and create professional-looking invoices
– Break down large jobs into smaller invoices
– Invoice foreign companies correctly and agreed payment method in advance
If you are already following all these elements, you should remember that all companies have late payers.
One solution to getting paid on time from late payers and reduce your stress level is to outsource the “late payers follow ups”.
Outsourcing to a dedicated team of professionals will result in an improved cash collection process, introduce a level of objectivity & reduce your staffs stress levels.
Your dedicated team will:
– Be familiar with your business and services
– Contact clients by phone & e-mail to remind them payment is due
– Persuade clients into setting up direct debit payments
– Provide you with a daily detailed report on payment status
– Update your database (i.e. , key personnel contacts, e-mail addresses, etc)