Due Date – Accounts receivable in everyday life, as well as in the business world, are commonplace. Almost everyone has been in debt, what is unusual is when we forget to collect bills or forget to make bill payments. If you forget to make a bill payment, the impact is that you will be subject to fines or interest. Meanwhile, if you forget to collect accounts, the impact is that your balance sheet is not balanced because of delayed income.
We can see from the cash flow that is also disrupted due to late payments. Basically, the source of life in doing business is good cash flow. On the other hand, another thing that makes the business worse is if the bill becomes congested and there is a delay in the invoice.
Delays in paying small amounts can affect employee salaries, turnover of venture capital, production, and aspects of a business. Therefore, here are ways to deal with the problem of delays and how to prevent customers from paying invoices late so as not to endanger your company’s cash flow?
Firm With Consumers
This may sound a little oppressive. However, this is one way that can be done to organize payments. You need to make an agreement with the consumer in advance about the repayment time.
Just like a person’s various personalities, consumer behavior in making payments will be like that. Therefore we need a firm attitude towards consumers in terms of payment.
Create your own payment schedule
When you get an order with a very high value, it’s best if the customer doesn’t pay for the order at once at the end of the time when the order has been filled or has been completed. You can outsmart this by creating a payment schedule that has been agreed upon with the customer, so that it will be clearly stated when the customer must pay the cost of the order.
Make sure the invoice delivery is not too tight.
Getting an invoice or invoice is not a pleasant thing for most people, especially when the invoice comes close to the due date. Therefore, if you want to speed up the increase in cash flow, make sure you send the invoice in advance.
The goal is that customers have time to process invoices and provide funds first. After sending, make sure to diligently remind customers before the due date of payment. If there is a delay, then try to keep talking about it carefully and still send invoices politely.
Offer discounts for early payments.
Discounts are one way to attract the most interest from buyers. Well, you can definitely do this to keep customers from being late to pay their invoices. You can also provide attractive discount offers for every customer who has made a payment earlier than the due date.
Choosing a payment method that is easy and quite profitable
In choosing a payment method, try to make the payment method easy for you to accept. The easier the payment method, the faster the money will enter your business account. For example, payment via bank will certainly provide convenience and comfort for both parties. Apart from the fact that the payment goes directly to the account, there will be no fees for making transfers between the same banks or other additional costs.
Giving Late Charges
Waiting for payment is sometimes draining and emotional. You will waste time taking care of business and customers. Thus, adding late fees will encourage consumers to immediately make repayments.
In fact, in conducting a business relationship, trust must be built between the two parties. If the customer has paid or paid an advance, the company is obliged to deliver the goods on time.
But keep in mind that consumers are a group of people who must be served well. Without them, you can be sure that your business will not run smoothly. However, on time payments can also affect cash flow in a company.