Keep the Cash Flowing Into Your Business for Continued Success
Realising your dream of owning your own company is a major milestone in your life, and to continue the success that you have already achieved you must maintain a healthy cash flow. You already know that cash is king in your company, and managing it effectively is paramount to the level of success that youâll experience in your business. Letâs look at some tips for keeping the cash flow positive in your coffers and your performance at its optimum level.
- Have an established credit procedure and observe it with each client. Be sure that you send invoices so that remittance will coincide with when your own financial obligations are due. Determine a credit line for each customer, check their credit history, and modify their payment schedule if they begin to find difficulty in making their payments to your business. If you let them extend their pay schedule over a reasonable time frame, youâll get the payment that the clients otherwise could not make.
- Be as organised as possible with invoices and the collection of payments. When you offer credit to a client, you almost become a bank â meaning that you must track and collect your payments in a timely fashion. This can take a great deal of your time. This is an area that can be outsourced so that your business can save money and still receive remittance quickly and efficiently.
- Make sure that your client knows the due date of his payment and state it plainly on the invoice. Your clients are busy people, too, and keeping track of their own bills must be handled by someone at their firm. If you make sure that the client knows when he is to make remittance, your cash flow should be healthy and you should experience no lag time when your own financial obligations should be met.
- Be aware that there are laws that allow you to charge interest. If a client is late with his payment, you can offer him a friendly reminder that your company must charge him interest on his overdue payment to help cover the costs that you are now experiencing.
- Use a professional agency to help you manage your invoicing and other business operations when possible. Using a reputable agency can save you time, money, and effort and provide you with free time to grow your company and network with clients and investors.
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