A Few Quick Tips for Getting Paid Faster!

Posted on 06.Mar.2015 by BrickPixel Admin | @amcomcap

Getting Paid FasterMany businesses miss the basics of keeping the cash flowing. This can be incredibly tough on small businesses, which often depend on timely payments from clients to pay the bills and grow. The following are just a few strategies that will help you collect on invoices faster and more effectively.

1. Invoice Your Customer Promptly and Accurately!

  • Send out an invoice the day you deliver your product or complete your service. Our clients that are really good hand deliver their invoices whenever possible.
  • Make sure that your invoice is accurate and complete. Make sure that your invoice complies with any payment instructions provided at the time you were given the order. Make sure the invoices reflects any corresponding purchase order number and the authorizing individual's contact information.
  • If you can send the invoice via facsimile or email, do it! But always confirm that it was received internally by the correct responsible party. This is best accomplished with a "quality assurance" style phone call that confirms that the invoice was received and that it meets the customer's standards.
  • Highlight the amount, due date, and remittance address. If you really want to take to the next level, provide electronic bank transfer information on your invoice!

2. Follow Up!

  • The day after delivering an invoice, always follow up to confirm that it was, in fact, received by the appropriate person. This can be done in the form of a "quality assurance" conversation. Tell the customer that you are calling to simply check that invoice is, in fact, accurate and meets the standards of their payment terms. You can also use this as an opportunity to find out if any additional approval is necessary. It is also a great opportunity to build relationships with those responsible for payment.
  • Based on the findings from the initial "quality assurance" conversation, follow up, approximately 14 days before you expect payment. The purpose of this call is to find out if the invoice has been approved for payment. If it has not, due to a shortage or quality issue, this will be your opportunity to fill the order completely or correct any quality issues. Again, the tone of this conversation is one of quality assurance.
  • If the customer does not pay on the date expected, always follow up! But remember, at this point you need them to do something for you! Sugar always goes further than spice.

3. Do Some Credit Research Up Front!

  • When dealing with large orders, always ask for trade and/or bank references up front. Asking for credit references is a normal business exercise. Don't be afraid to ask!
  • If you use a factoring service, they will always have credit reporting services to assist you with your credit decisions. This is just one of the many added benefits of working with a factoring company to smooth out your collection efforts.

4. Provide Customers with Detailed Monthly Statements

  • Most modern accounting systems are capable of producing detailed monthly statements that list all outstanding invoices and amounts owed. Use this feature!
  • Sending out monthly billing statements is one of the most cost effective collection tools a business can utilize.
image description Roy Brooks and American Commercial Capital, LLC, has provided invoice-factoring services to Houston-area small businesses since 2003. We work with businesses in San Antonio, Dallas, Austin, Fort Worth, Beaumont, Port Arthur, Corpus Christi, and other nearby Texas cities.

If you want to learn more about how cashflow-sensitive invoice factoring can help your business, give us a call at 713-227-3863, contact us here, or fill out our form for a free, no-obligation quote.

READ MORE FROM AMERICAN COMMERCIAL CAPITAL

Business Video Roundup: Know Your Market & Be a Go-To Expert in Your Field

Jim Ryan, Flexero CEO "Know your business, know your competitors, know your market." That's advice from entrepreneur Mikhail Goncharov, who started his business with a single food cart in Moscow in 1998. Today his business has grown into a thriving $120 million chain of restaurants that recently broke into the American market with new locations in New York City. Goncharov's advice also ties in with the other videos in our roundup this week: Evan Carmichael discussing how to become the go-to expert in your field and Wang Chang telling the story of how he sold his business to Twitter for more than $100 million. Plus, Flexera CEO Jim Ryan talks about the importance of having a clear vision of success as a business leader. Read more

Mike Winters 19.1.2018 

Houston Factoring Companies: Why Choose American Commercial Capital for Invoice Factoring?

Houston Factoring Companies / Houston SkylineIf you're a Houston-based entrepreneur who has been searching for ways to improve your business cash flow and get the capital you need to grow, chances are you've come across a dozen Houston factoring companies who all claim to be the answer to all your problems. Invoice factoring, for those who don't know, is when a business sells its accounts receivable (invoices) to a third-party company at a discount. Factoring helps prevent business cash-flow problems by allowing a business to get paid on invoices immediately rather than wait the typical 30 to 90 days to receive a client payment. It's a cash-flow sensitive solution that eliminates cash-flow restrictions and helps small businesses stay ahead of the game and grow. Read more

Mike Winters 12.1.2018 

Business Video Roundup: Small-Biz Sales Strategies, Business Acquisitions & Work-Life Balance

Forbes Women's Summit – Advice for Female EntrepreneursAs we ease into 2018, here are a few videos to help guide your way to success in the new year. Brian Tracy offers some quick tips to hit the ground running in 2018, Evan Carmichael reveals seven ways to achieve work-life balance, and Tim S. Marshall shares several effective sales strategies for small businesses. Plus, a quick video from the Forbes Women's Summit includes excellent advice for aspiring women entrepreneurs. Then the founder of 1-800-DENTIST has some quick tips that might come in handy if you're looking to sell your business. Lastly, we want to wish all of our readers a happy, prosperous, and successful year ahead. Read more

Mike Winters 03.1.2018 
Back
AMERICAN COMMERCIAL CAPITAL HOME

HOW MUCH COULD FACTORING INCREASE PROFITS FOR YOUR BUSINESS?

CALL 713-227-3863