One of the problems that plagues many businesses is maintaining proper cashflow that keeps vendors and employees paid and the company running like a well-oiled machine. This task alone can consume a great deal of time which could be better spent on networking with colleagues and growing the company. Let’s take a look at three major steps to improve the cashflow for your organisation.
Managing Your Debtors
Cashflow problems can indicate that your customers aren’t paying in a timely fashion to keep enough money in your coffers to pay your expenses. By asking your clients to pay sooner you can begin to alleviate the shortfall that your company is experiencing; there are a plethora of ways to encourage clients to pay faster. You can offer discounts for prompt payments and penalties for payments that are late; both of these ideas can cause your clients to pay their invoices on time or in advance of when they are due. Make sure that your invoice is clear, concise, and contains the vital information that your customers need to know about payment; place all contact information in a prominent place on the invoice for your client’s convenience. You may also want to accept Internet payments which will expedite the payments made to your company.
Establish a Policy for Credit
Sometimes collecting payment for products or services rendered is a problem because you haven’t established a clear and precise credit policy for your customers. You should do a credit check of all of your new customers and study the payment history of your current clients to determine wherein your problems reside. If one of your current customers begins to pay slowly you should do a credit review so that you can ascertain if they are experiencing cashflow problems themselves. As you create accounts for new clients be sure to discuss payment terms in your contract and point out any discounts or penalties that will be applied to their account for non-payment.
Have a Back-up Plan
Until you can investigate and determine where your cashflow problems are originating you should have a back-up plan that includes working with a business finance solution team to ease the challenges of your shortfall. Visiting ultimatefinance.co.uk can inform you of some of your options for handling your financial burdens and still honouring your own financial obligations. You need a partner that is flexible, accessible, and that has tried and trusted methods in place to assist you until you can begin to regain control of your corporate budget. These finance professionals are experts who are committed to integrity, excellence, and helping you to manage your financial problems with innovative and common-sense solutions.
Managing your cashflow may take a bit of reflection and examination of your accounts receivable and accounts payable until you can determine where mistakes are being made. Until you have completely remedied the situation, find a team of financial professionals who can help you navigate your way back to positive cashflow.