![]() ![]() Whether it’s because they lost the invoice, the information is wrong, or the payment method is too complicated, you can take action. In a US study by Atradius, 2% of the total value of domestic, and 16% of the total value of foreign B2B invoices, were reported to be still outstanding after 90 days past due! With that in mind, it’s simple to understand that an unpaid bill could easily turn into bad debt if fast action isn’t taken.Unless there was an oversight, there’s surely a reason why your customer hasn’t paid yet. Track late payments: The longer you wait, the greater the chance you will not receive payment.Keep in mind that you can negotiate discounts with your suppliers for your advance payments. By aligning your customers’ payment deadlines with those of your suppliers, you can balance your disbursements and expenditures- as long as your customers meet their payment deadlines!Another way to improve cash flow is to reward prompt payment and have consequences for paying late. Adjust payment deadlines: If your customers have 45 days to pay but most of your suppliers require payment within 30 days, you’re risking cash flow issues.Lastly, by giving your customers the opportunity to pay online directly through the portal, you’ll get paid faster. And they’ll have access to their payment history, which makes disputes less likely. It’s practical in cases where they’ve lost their bill. With a portal, for example, your customers can access payment information at any time, without having to contact you. Let them choose how they want to receive their invoices: by regular mail, email, portal, SMS, EDI, etc. Make it easier for your customers to pay: It’s rarely a pleasant job, so you might as well simplify it for them.There are things other than decreasing payment time that can be done to optimize your cash flow. Reducing the time it takes for your customers to pay is crucial in improving your cash flow, but it’s not easy to do-especially knowing that 4 invoices out of 10 will not get paid on time. Paying and getting paid are basic processes of all business activity, and these processes can be optimized.Įven though you really have no control over whether or not you get paid, you can take effective steps to ensure that you receive payments in a timely fashion. ![]() Having sufficient cash flow is a major concern for just about any company. ![]()
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