3 Tips to Getting Your Clients to Pay on Time

If you’re a small business owner, you already know the challenges that can be faced if customers don’t pay on time. While the sales may be rolling in; your cash flow may not be doing so well if you’re far behind on up-to-date invoice payments from clients. Without adequate cash flow, it can be nearly impossible to have enough money to cover all your expenses related to your business, including paying employees, paying vendors, and covering the cost of inventory, to name a few.So, how do you get your clients to start paying on time so that your cash flow doesn’t suffer?

  1. Shorten Your Payment Cycles

Very long payment cycles that are 60 days and more can negatively impact your cash flow. All of the bills associated with running your business – such as utilities, taxes, lease, and payroll – will all be due in much shorter time frames. As such, you’re going to need the money to cover these expenses, which is why your getting payments sooner rather than later is important. Don’t give your customers more time than necessary to make good on their payments. One way to do this is to shorten the timeframe within which … Read the rest

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