Here at Commercial Domestic Investigations we recognise that a good cashflow can make or break your business. With SME’s faltering all over the UK due to payment problems and bad debtors, a good cashflow can make all the difference. We wanted to give you some tips to maximise your cashflow.
- Where possible, ask clients to pay in advance. This means you avoid non-payment completely.
- Agree payment terms with your client in advance and ask them to sign an agreement to confirm that they accept these terms.
- Similarly, if a supplier gives you 30-day terms, don’t rush to make a payment, pay on day 29.
- Send out your invoice as soon as possible after completion of a job.
- Ask for positive feedback from your customer straight after completion, this gives them no reason to delay payment.
- Set your payment terms as low as possible. 30-days may be the norm but try for 7 or even 0-day terms.
- Create a simple cashflow forecast to estimate large expenses so that you can prepare for them.
- Consider becoming a limited company, limited companies only pay tax bills nine months after the year end.
- Get your accountant to help you budget for future tax bills so that you can be prepared for this.
Commercial Domestic Investigations can help you and your company maintain a positive cashflow through the best practice of credit reporting. Call us on 08444 159200 or email firstname.lastname@example.org to find out how we can help your business.