Cash flow is a measure of the money coming into your business in the form of profits and the money going out in bills and other debt obligations.
While good cash flow keeps a business alive, poor cash flow can sink it. Many cash flow problems are caused by a delay in payments. Many business owners may not even fully realize the problem until it is having a major impact on their cash flow.
The “Cash Flow” solution is simple: tell your customer what your expectations are at the inception of the sale and follow through in a timely way from the day the account is due until it is paid.
Applying policies consistently and having set procedures in place to ensure that your customers pay in a timely fashion are vital. Businesses should clarify payment terms and expectations on every invoice, whether that’s “payment due within 30 days” or “payment due upon receipt.”
Don’t assume that your customers automatically know what to expect. Be clear about when you expect to be paid for your products or services and follow up promptly when invoices aren’t paid by their due date.
Be polite but firm in telling your customer what you are going to do. And then make sure that you do what you said you were going to do. By doing this, you will not only collect more dollars yourself, but also when it is time to turn the account over to an outside third party collection source, it will be easier for them to collect as well.
Please visit Dynamic Legal Recovery’s website or call us at 877-777-7564 for your complimentary evaluation.