Get Paid Fast: Four Ways to Improve your Company’s Cash Collection Cycle

How long does it take to collect money that is owed to your small business? Here are four ways to get paid faster.

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2. Invoice immediately.

Generate an invoice immediately after the work or order has been completed. The sooner your client receives a bill from you the less likely it is that they will forget to pay. And remember, not sending an invoice immediately also sends a message to your client that payment is not urgent.

3. Call before the due date.

With larger outstanding balances, it is a good idea to call your clients prior to the invoice due date. This approach, when done tactfully, can be effective on many levels by:

a. Confirming payment
b. Adding another level of customer service
c. Troubleshooting potential problems that would delay payment
d. Precluding payment issues before it is too late

4. Be specific when mailing invoices.

If you choose to mail invoices, one very simple but important detail to consider is to indicate the individual’s name on the envelope along with the company name. Most companies request to simply address it to “Accounts Payable” but including the individual’s name will ensure the invoice is received by the right person.

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Photo: Eddie Bauer

Ramir Rodriguez is a Business Development Officer with Treasure Valley Factors. He has helped businesses understand how factoring can help them get paid on completed work and grow their business. For more information on factoring please visit the blog Factoring Helps. Don’t forget also to connect with Ramir on Twitter and LinkedIn and “Like” Treasure Valley Factors on Facebook!

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