THREE TIPS TO IMPROVE YOUR CASHFLOW
Written on the 5 August 2016
THE ideal for any business is to send off an invoice with total confidence it will get paid in a timely manner, but that is not always the case.
The latest Trade Payments Analysis from Dun & Bradstreet shows businesses are waiting an average of 44.9 days for payment, and near historical lows, but still a long time to wait for any small business.
According to FactorONE CEO, Greg Charlwood (pictured), there are ways to ensure your invoices are paid as fast as possible.
The startup financier deals with hundreds of Australian small businesses who are seeking to relieve the financial pressure that comes with paying staff and suppliers while waiting for customers to settle invoices.
"At a time when Dun & Bradstreet analysis is showing an almost 37 percent increase in the number of startups in Australia over the previous quarter, it's important for new small businesses to have rigorous cash flow systems in place, and for existing businesses to run a fresh eye over their finance and invoicing systems," says Charlwood.
Here are his three tips to get paid quickly:
1. New startup owners and existing SMEs should take a look at how they finance their business and whether it is the most effective way to help them thrive, not just survive.
"I know so many small businesses who are amazed at the difference it makes to payment rates when they make their invoices easy to pay," says Charlwood.
"It's also wise to issue the invoice as soon as a job is done or goods are despatched, rather than waiting until the end of the month."
"Even if an invoice is only say five days overdue, this equates to extra interest payments and it all adds up in ways that may small businesses cannot afford."