It’s not just Athletes that can hit a wall, many businesses come up against obstacles that seem too large to conquer. At Commercial Domestic Investigations, the main problem that our clients face is not getting paid on time. We wanted to share some of our expertise and help knock down some of the obstacles in your way.
It is typical for a business to need help with funding when they a first starting out or looking to expand. Banks are the go-to option for companies that need a little extra help but sometimes banks are not the best option. Do your research and seek out some expert advice to explore all of the options available to you.
It is worth taking a look at your company credit report, if you are asking for funding then your credit report will be the first thing that a lender looks at. If your credit score is undesirable then take action to build it up. Ensure that all of the business details are correct and clear any outstanding debts that you may have; the more stable you are, the more likely you are to secure funding at a good rate.
Attracting new business
Ups and downs are an inevitable part of business and should not cause too much concern. Seasonality can have an impact on your business, make sure that you speak to decision makers before they disappear on their holidays. Review your marketing campaign, ensure that you are targeting the right audience, if you’re not seeing any return on your investment then it may be time to reinvent your marketing efforts.
Unstable cash flow
Cash flow is an important factor when it comes to your business’s success. If your cash flow is unstable then it can be the first sign of trouble. If money isn’t coming in and out of your account then it can have a knock-on effect. If you don’t get paid in time, you cannot pay your own bills on time. Analyse your outgoings and make sure that you are not wasting money on luxuries that your business doesn’t use or need. It is best practice to overestimate your expenditure and underestimate your income so that you are not left with any nasty surprises at the end of the month.
One trend that businesses are not so thrilled about is the rise in late payments. They are the scourge of companies around the globe. No matter how large or small the organisation; late payments can be very damaging. There are some things that you can do to tackle late payments.
Punctuality – Make sure that your invoices are correct before you send them, this will avoid problems down the line. Try and send your invoices on the same day every month, quarter or specified time frame so that your client can get used to receiving them. Take the time to build a relationship with the client and their finance team, it’s a lot easier to call and check on the progress of an invoice when you have a strong relationship with the debtor.
Incentives – If you are in the position to, consider offering your clients an incentive or discount to secure a payment. This may include offering a discount on future purchases if they pay upfront, or if an account is overdue you may offer a discount on the debt to try and get some money into your account.
Check out your customers – Reviewing your clients’ credit report can give you an insight into their payment history, you can find out how long it takes them to pay their invoices, and if their habits are getting better or worse. This can help you to determine contract and payment terms to avoid your business being damaged.
At Commercial Domestic Investigations, we understand how overwhelming it can be when your business begins to struggle. You begin to deal with the bigger problems at hand and daily tasks, like chasing invoices, get forgotten about. That is where we can help, contact our team on 08444 159200 to find out how we can relieve the pressure from your company.