Times are tough at the moment. With economic uncertainties and people tightening their belts, it’s more important than ever to safeguard our businesses and make sure we get paid on time.
So, let’s dive into some strategies to safeguard our cashflow and secure those payments!
Carry out credit checks.
To start, let’s get to know who we’re doing business with. It’s essential to carry out credit checks on all our customers (even the ones we’ve been working with for years!).
It might seem unnecessary with loyal customers, but circumstances can change and it’s better to be safe than sorry! Understanding their financial stability and payment history can help avoid potential payment issues down the line.
Implement robust credit control processes.
Having robust processes in place can work wonders for ensuring we get paid on time! Set clear payment terms, send out reminders for overdue invoices, and don’t be afraid to chase up payments if you need to. By staying vigilant and being proactive, you can reduce the risk of late payments and maintain a healthy cashflow.
Review your T&Cs.
Terms and conditions – your first line of defence when it comes to payment disputes! Review your T&Cs regularly to make sure they’re watertight and clearly outline your payment terms, late payment fees and dispute resolution procedures. By setting your customer’s expectations from the start, you can minimise misunderstandings and protect yourself in case things don’t go to plan.
Don’t wait until it’s too late.
Late payments can disrupt your cashflow and strain relationships with customers. One of the biggest mistakes we can make is waiting until a debt is overdue before chasing it up. Instead, make sure your invoices are clear and easy to understand, and reach out to customers before a payment is due to check they’ve received the invoice and address any queries.
By staying ahead of potential issues, you can maintain a smooth financial operation and protect your business from unnecessary risks.
How can we help?
We’re here to make your life easier! We help business just like yours all with their finance functions, so you can focus on making more cash and more profit, at lower risk.
Book a call to see how we can help you.
Next week we’ll be looking at other ways you can keep your money moving and the best ways to control your cash, don’t miss it!
