Good cash flow is absolutely crucial to the health of any business. Every organisation needs a steady inflow and outflow of cash in order to operate properly.
Here are five straightforward tips for better cash flow:
1. Offer customers as many payment methods as you can
The more options you give your customers, the easier it'll be for them to pay you on time. We must remember that what's most convenient for us may not be the most convenient for our customers.
2. Implement a firm-but-fair collection policy
It's obviously important that you receive your payments on time, but it's equally important that you treat all customers fairly. A solid collection policy allows you to operate effectively and ethically. You could, for instance, send reminders to customers as standard – which could help you cut down on late payment and non-payment.
3. Offer a small discount for early payment
Your customers will be much more eager to pay you if they can pay you slightly less. "A penny saved is a penny earned," as the maxim goes.
4. Pay your own debts on time
Good cash flow doesn't just depend on money coming in – the money you owe to your suppliers (or whoever) has to go out. In other words, keep a close an eye on the invoices you receive.
5. Build strong relationships with your customers and your suppliers
If you get to know your customers and establish a friendly mode of communication, they'll be much more receptive and far more likely to pay you on time.
Recruit skilled credit control staff
Another simple way to improve your cash flow is to hire expert credit control staff. We recruit on a nationwide basis, and our consultants will find you a skilled professional who fits perfectly into the culture of your organisation.
Call 020 7650 3199 or email email@example.com for more information.