FasterPayments.com

Helping America Get Paid Faster

How to get Paid Faster

When offering customers payment terms (trade credit) there are some important things to consider.

Good communication: collecting detailed information and weighing that information on each customer individually can be extremely helpful in determining if invoice payments will be made on time.

How much business is the client expected to do with you each month? Do they pay their bills?
At what intervals do they pay other vendors? (10 days from receipt 30? 60?

Credit checks from major agencies are fine but from our experience grossly inaccurate. It's like expecting a cop to retrieve your stolen bicycle, if you really want it back you better investigate it yourself. 

When doing initial investigation as in future interactions be kind, respectful yet firm. (be assertive not aggressive)

At no time during your business relationship should you be careless or disrespectful with other businesses or customers.

Before extending trade credit be very clear and make sure your customer understands that payment is needed and expected promptly. (If 15 turnaround is on invoice payments is crucial to your cash flow don't offer "net 30")

If adjustments have to be made to obtain a potentially good clients business that's better weighed at the beginning of the relationship.

Better to find out up front there may be variations rather than when you're squeezed to pay your bills because you haven't been paid.

All invoices need to be received by your customer consistently prompt and error free.
 
Don't wait for problems. If you have agreed on terms and the customer is late, contact them immediately. Present yourself as caring about them and their business (and do so) and you're willing help them if possible. (is there anything we can do to help expedite payment now and in the future, was there a problem with our service, etc.)

Keep in mind that the customer may be having cash flow issues themselves.

If that's impeding their ability to pay you on time there is a very simple solution.

Introduce them to invoice factoring

 Invoice factoring allows them to receive payment on their invoices in 24 hours rather than 30, 60 or 90 days. Imagine what that could do for their cash flow.

Some good sites to check out!
  • Small Business Administration - SBA
    The major government entity for small business and provides assistance through loan guarantees, counseling and educational resources
  • GetPaidSystem.com

    Some advantages to third party receivables management (Factoring)

    Reduce Bad Debt
    Professional Collections
    Invoice Processing
    Offer Credit Terms to Customers
    Meet Increasing Sales Demands
    Take Advantage of Early Payment Discount
    Take Advantage of Volume Discounts
    Stop Offering Early Payment Discounts
    Don’t Give Up Equity
    Don’t Incur Any debt
    Helps Build Credit
    Fast and Easy Leverage Off a Customer’s Credit
    No Personal Guarantees
    Detailed Management Reports
    Invoices Are Paid Faster
    You Can Concentrate on Growing Your Business
    No Geographical Limits
    Early Detection of Customer Service Problems Credit Screening & Monitoring

    Other:
     Link Directory
    List your site on     HotVsNot.com! You can find other related resources in the Cash Flow Directory