It is absolutely vital to get as much cash in to the business as quickly as possible, here are a few ideas that might help.
Make sure that you send all sales invoices out as promptly as possible and make sure there are no errors (do not give the customer the excuse of delaying payment whilst you sort out a simple error).
Carry out credit checks on all new customers, this could highlight potential slow payers or even worse possible bad debts. Some businesses continue to credit check key customers for deteriorating credit ratings as a sign that they may have problems.
Offer discounts for early payment.
Try and get customers to pay a deposit with their order, this may be highly desirable for new customers until they have established a good track record for payment.
Try not to let old stock soak up cash, by getting rid of old stock for whatever you can get it will bring cash into the business and free space up.
Have a robust credit control system so that customers who exceed the payment terms are contacted promptly and outstanding balances collected.
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