The lifeblood of any business is its cash flow. When your cash flow relies on your customers paying their bills, you want to make sure you are doing everything you can to speed up your cash flow. Here are 6 ways to help:
- Offer Multiple Bill Presentation Options
While the traditional method of billing is to print a bill and send it in the mail, the sooner your customers can receive and view their bill the sooner they can pay it. An example would be to send your customers an email notification when their bill is available to view online, and provide them with a link for them to access their bill via your website.
- Include A Return Envelope With Bills
If you are going to be sending a bill in the mail, be sure to include a return envelope for your customer to send in their payment. Whether you are sending an invoice for a single transaction or you are sending out a recurring billing statement, including a return envelope for your customers to send in their payment is one of the easiest ways to speed up your cash flow.
- Accept Multiple Forms of Payment
Anytime you offer your customers multiple payment options, you improve your chances of getting paid sooner and for the full amount. So in addition to accepting payment via check, you might want to accept payment via credit and debit cards. And when you accept credit and debit cards, be sure to accept a variety of card types to increase your income avenues.
- Accept Multiple Payment Methods
Now that your customers are able to pay you with various forms of payment, they need options as to how to get you your money. While most customers are willing to mail in a payment, many prefer to make a payment online or over the phone. If your customers are going to your website to view their account and bill, allowing them a “Click & Pay” method is convenient and provides instant gratification.
- Offer Automatic Payments
When you accept automatic payments you are not only increasing your cash flow almost instantly, but you are also relieving the customer of the responsibility and hassle of making their payment.
- Be Clear About When The Payment Is Due
When a customer sees “Payment Due Date: xx/xx/xxxx” there is no question about when their payment is due. Avoid terms like “Net 15” or even “Due Upon Receipt” as they can be confusing or even misinterpreted by the customer.
Not only will the above suggestions help to speed up your cash flow, but they will also be perceived by your customers as just overall ‘Great Customer Service’. Happy customers are more likely to repeat business and refer others to you, thus ensuring your company’s growth and success.
What things have you done that have helped speed up your cash flow? Please leave a comment and let us know.