Cash Flow Strategies — customer invoicing

Why You Should Never Charge Customers Late Fees

business cash flow strategies customer invoicing

Why You Should Never Charge Customers Late Fees

In researching this subject, I found countless articles advising business owners to charge late fees and finance charges. While this seems logical, I can tell you from personal experience it does not work. In assisting past employers and clients with their bill payments for the last 25 years, almost all of them told me, “We don’t pay late fees,” and they never did. I do have a caveat to the above. If you are in the business of collecting loan payments or rental payments, late fees do work. But if you are providing materials or services, charging late fees usually backfires...

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How Your Customer Billing Process Is Sabotaging Your Cash Flow

business cash flow strategies customer invoicing

How Your Customer Billing Process Is Sabotaging Your Cash Flow

There is one question a business owner needs to ask herself every morning * Not billing your customers in a timely manner is one of the biggest cash flow mistakes you can make. Read through the suggestions below to get your customer billing on track. Problem - You work on your customer billing whenever you can find the time. Solutions Put customer billing work on your calendar, just like you would a meeting. Do your customer billing at a time and place where there are no distractions. On the days you schedule billing work, do it very early in the morning...

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How To Design and Deliver Your Customer Invoice To Get Paid Faster

business cash flow strategies customer invoicing

How To Design and Deliver Your Customer Invoice To Get Paid Faster

There are several ways to format and design your customer invoice that will get you paid faster.  Stop using “Due on Receipt” terms. Most businesses do not pay bills upon receipt. So using this as your payment terms really provides no due date at all, and you’ve now let the customer decide when to pay you. Stop using “Net 30” terms if you want the customer’s payment in your bank account in 30 days. Most customers put a check in the mail on or around the 30-day mark when they see these terms. Sometimes the bookkeeper waits 30 days to print...

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