Collecting your Payments Faster

Collecting on outstanding invoices faster is one way to increase your cash flow and ultimately affect your profitability. Here are a few tips on how to speed up the process.

Set (or negotiate for) favorable payment terms.

If you are waiting 45, 60, 90 days for invoices to be paid, it might be time to consider reworking your A/R structure so you reduce the days until you get paid. If your customer is unwilling to negotiate terms, you may be able to suggest implementing a late fee if they pay past their scheduled term.

Invoice promptly.

The sooner they get the bill, the sooner they pay you!

Be consistent.

If you expect to get billed regularly, you need to invoice your customers regularly. Maintain the same, consistent calendar.

Outsource collection calls.

If you have a full service partner, let them do the work for you when it comes to collecting overdue payments.

Gently remind clients that temp payroll is still payroll.

Payroll is always paid first as an expense for any company. Why should your invoice for temp payroll be treated any differently?