Many business owners experience issues with cash flow. It is one of the number one problems that plague small business owners. Regardless of the industry that you are in there are tips to help you get paid faster.
1) Send invoices through email. QuickBooks Online, Xero, Freshbooks and many others have made it so easy to quickly create and send a customized invoice to your customers. You can customize the invoice with your logo and the look and feel that you want. Clients receive the invoice attached to the email from you. They can quickly open it, reply to the email with any questions and print the invoice for their records.
2) Offer digital payment options – With today’s technology there is no reason that a client needs to write a check or even print an invoice if they want to remain paperless. QuickBooks Online offers the ability to not only email thei invoice but also include a button on the invoice for customers to “Pay now”. When the client clicks the “Pay now” button they are quickly taken to a screen that gives them options for payment. The current options are Mastercard, Visa, American Express, Bank Transfer and even Paypal. Funds are immediately collected from the client and deposited into your account within a few days.
3) Offer incentives – Many businesses have been offering discounts such as 2% net 10 for years. Customers appreciate a discount for prompt payment. Accounting software and many merchant service providers have also made it possible to set up reoccurring billing. The customer provides you with their bank or credit card information and you automatically draft the charges at a designated time each month. This makes it much easier for the you and the client. Consider offering a discount to customers who allow drafts from their checking.
4) Offer financing options – Many times when a client has a large project they need completed they may hesitate because of the cost involved. Businesses don’t always have the available cash flow to do what they need to do. Paypal has made it so easy to offer financing to customers of any amount over $150. If you accept Paypal, remind your clients that they have the ability to pay you for the project through Paypal and receive 6 months no interest. This can help a client stretch their hard earned dollars even further and it allows you to be paid immediately.
If you want to explore the different options for getting your money in your pocket faster then email us firstname.lastname@example.org for a free consultation.