Every business needs to speed the collection of customer payments but none more so than a new company. Our businesses live and breath by the amount of cash we have on hand so collecting that money faster is crucially important. These tips may be most helpful for companies that invoice clients.
Tip one: Bill Up Front – It never ceases to amaze me how many customers don’t mind paying part or all of their fees in advance. For most customers, especially larger companies the big hurdle is closing the sale. Once they provision the cost in their budget and get a purchase order approved they often don’t mind paying half or the entire bill in advance. This is especially true if you can demonstrate that you have upfront labor or purchases that you are going to need to make to meet their needs.