r customer. If they pay before the due date, they will save some additional money and you will be paid a lot faster. If they do not take advantage of your generous offer, they will be responsible for the balance owned. It also helps keep good customers because you have provided an incentive for them to continue to do business with you.

2.

Cash is the lifeblood of any business. As humans need air to breath and food to eat, your business requires customers that provides the primary substance that keeps a business in business: cash.

But in the real world, businesses that invoice their customers for payment can face a challenge in getting paid, especially when the customer may be another business or a government agency. Somehow the terms “NET 15, NET 30 or DUE UPON RECEIPT” seem to go unnoticed by the customer and the invoice doesn’t get paid until 60 to 90 days after the work has been performed. In other cases, the invoice may be paid after 120 days – if not paid at all. For the seller, this can be the start of cash-flow challenges, which can rapidly escalate into a crisis.

In spending over 10 years working to help turn around financially troubled businesses, I have found that the key to better cash-flow is to ensure that the business implements a system to get their receivables paid quicker and faster, with less pain for the customer.

Here are eight ways to start improving a company’s cash-flow today:

1. Give a Discount for Paying the Invoice Before the Due Date: Offer an additional percentage off or maybe a fixed dollar amount off of the total invoice if they pay within 5 days of the invoice date. This strategy works well because it provides a win-win situation for you and your customer. If they pay before the due date, they will save some additional money and you will be paid a lot faster. If they do not take advantage of your generous offer, they will be responsible for the balance owned. It also helps keep good customers because you have provided an incentive for them to continue to do business with you.

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another business or a government agency. Somehow the terms “NET 15, NET 30 or DUE UPON RECEIPT” seem to go unnoticed by the customer and the invoice doesn’t get paid until 60 to 90 days after the work has been performed. In other cases, the invoice may be paid after 120 days – if not paid at all. For the seller, this can be the start of cash-flow challenges, which can rapidly escalate into a crisis.

In spending over 10 years working to help turn around financially troubled businesses, I have found that the key to better cash-flow is to ensure that the business implements a system to get their receivables paid quicker and faster, with less pain for the customer.

Here are eight ways to start improving a company’s cash-flow today:

1. Give a Discount for Paying the Invoice Before the Due Date: Offer an additional percentage off or maybe a fixed dollar amount off of the total invoice if they pay within 5 days of the invoice date. This strategy works well because it provides a win-win situation for you and your customer. If they pay before the due date, they will save some additional money and you will be paid a lot faster. If they do not take advantage of your generous offer, they will be responsible for the balance owned. It also helps keep good customers because you have provided an incentive for them to continue to do business with you.

2.

flow challenges, which can rapidly escalate into a crisis.

In spending over 10 years working to help turn around financially troubled businesses, I have found that the key to better cash-flow is to ensure that the business implements a system to get their receivables paid quicker and faster, with less pain for the customer.

Here are eight ways to start improving a company’s cash-flow today:

1. Give a Discount for Paying the Invoice Before the Due Date: Offer an additional percentage off or maybe a fixed dollar amount off of the total invoice if they pay within 5 days of the invoice date. This strategy works well because it provides a win-win situation for you and your customer. If they pay before the due date, they will save some additional money and you will be paid a lot faster. If they do not take advantage of your generous offer, they will be responsible for the balance owned. It also helps keep good customers because you have provided an incentive for them to continue to do business with you.

2.

t ways to start improving a company’s cash-flow today:

1. Give a Discount for Paying the Invoice Before the Due Date: Offer an additional percentage off or maybe a fixed dollar amount off of the total invoice if they pay within 5 days of the invoice date. This strategy works well because it provides a win-win situation for you and your customer. If they pay before the due date, they will save some additional money and you will be paid a lot faster. If they do not take advantage of your generous offer, they will be responsible for the balance owned. It also helps keep good customers because you have provided an incentive for them to continue to do business with you.

2.

r customer. If they pay before the due date, they will save some additional money and you will be paid a lot faster. If they do not take advantage of your generous offer, they will be responsible for the balance owned. It also helps keep good customers because you have provided an incentive for them to continue to do business with you.

2. Have an Internal Collections System In Place: More often than not, a small business will focus so much on acquiring the client and performing the work that it doesn’t dedicate as much time and effort to collect payment. Make sure you send your invoices out immediately upon completion of your work or shipping of your product. If you have the resources, have your staff send a friendly email reminder or make a phone call ten days before the due date (if it’s a Net 30 or more term) to the customer reminding them to make payment.

3. Accept Credit Cards: One of the simplest ways to increase cash-flow is to accept credit cards. Once the charges are made, the money is transferred to your account, usually by the end of the business day, or in some cases, instantly. Studies have shown that people and businesses will spend more using a credit card than they will with cash. Offer your customers the ability to pay their invoices via credit card and your sales will increase. Because there are thousands of credit card processors in the United States, you are in a position to compare and negotiate processing rates and equipment rental fees.

4. Accept Checks By Phone, Fax and the Web: This is a very easy way to have your customers pay, with little hassle. There is inexpensive commercial software available for purchase which will allow you to create a chec