While basic cashflow rules may seem tiresome, they are an effective way to ensure your business isn’t burned when your customers hit hard times, here are 12 easy ways to improve your cashflow – today!
- Ask to be invoiced rather than paying immediately
- Pay up front for goods and services and ask for a discount for prompt payment
- Be across chasing money in early
- Invoice early in the month
- Invoice for larger chunks of time or products up front
- Sign up to Creditorwatch and use the Creditorwatch logo on all invoices to encourage prompt payment.
- Change your billing cycles by dating invoices early
- Offer a discount or other incentives for customers who pay their invoice before the due date
- Invoice early in the production cycle
- Split payment terms so you frontload the payments coming in, rather than waiting till the end of a project to be paid
- Pay your invoices via credit card to get points, but pay your credit/charge card bills each month so you don’t get charged interest
- Encourage partial payment. Receiving partial payment upfront means you get money earlier and your clients can spread out their payments
