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There’s no doubt about it. Cash Flow is without question one of the biggest concerns no matter how big your company. As a small telemarketing firm, we lived (or died) by cash flow. I can’t tell you how many times I woke up Friday at 2 am waiting for a ACH transfer from a client, praying it would land as I had payroll going out that morning. At one point I realized “enough is enough” I need to have a better strategy so that I can sleep! Here are a few procedures I put in place to stop the late night cold sweats and insomnia:
1. Communicate with your clients
Strengthen your relationship and make sure you are communicating on a regular basis with your clients. Also, it’s good to know who is in charge of your customer’s accounts payable and cuts checks. It’s always good to show these folks some love and attention, as they can help get you paid faster.
2. Net Terms
In our world where we had to pay our telemarketing employees based on their sales production, we would set terms that would help us with payroll. That said, don’t be afraid to ask for Net 5 terms. Some clients will push back—but many will go with it. When you set the expectations that high, you will find most clients will pay it and the remainder will pay by Net 10.
3. ACH (Automatic Clearing House)
This is a great way to get the funds wired directly into your account without the additional hassle of taking a check to the bank. It’s very easy for the client to set up on their end. And the clients that pay you this way can let you know when the transaction has been initiated with an automated email.
4. Take Credit Cards
An easy and inexpensive way to keep clients current is have a client’s credit card on file. Once the work is done, provide the client with an updated invoice and charge the card.
5. Take a Deposit
Taking a deposit is a great way to help keep your clients work on track. If your client is always working against a deposit, then all you need to do is provide updated invoices that show where they stand. This is a must for clients that are late payers.
Hopefully you are able to implement a few of these ideas and increase your cash flow so you can sleep at night. Let us know what how it’s going and what you think on Twitter @IncrementalBizz
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