Late payments……..they’re the bugbear of all businesses, be they small, medium or substantially larger, but what can be done about them?
The Federation of Small Businesses (FSB) estimates that 37% of small businesses have cash flow problems, directly as a result of late payments from clients, customers and suppliers. And it’s not just local and small customers that are late, the big boys fail to pay promptly over 60% of the time.
A few tips to avoid late payments in the first place.
1. Be sure you know your payment terms in advance and are crystal clear on what to do in the event of a cash-flow failure.
2. Make sure your invoice is correct. If there’s an error on your part, they can’t be blamed for taking longer to pay.
3. Follow-up on late payments the very next day. It could easily be an oversight. Some businesses are small, other are huge, but all make the occasional mistake. The trick is avoiding being in that position from the start.
4. Speak with the customer before sending that email everyone dreads.
5. Always be polite. They’re people like you and if you’re rude, they won’t want to deal with you again.
So, what happens if these helpful tips do nothing for me? What then?
It all boils down to insight and control.
By this we mean, the minimisation of bad debt exposure. If you’re able to understand who you are doing business with from the very beginning, then you can take that knowledge and decide whether they are the kind of customer you want.
The ability to research both existing and prospective clients, with a view to understanding their credit rating and their historical payment behaviours can be the difference between success and failure.
In addition, we encourage the use of credit control tools, those that allow you to set up automated payment reminders and statements tailored for each of your customers, which will remove the admin burden and save you precious time.
Oh and did we mention these services are both totally free?
But that’s not all we offer.
A Cash Flow Solution for all
Many businesses find that they spend, what they believe is an inexorable amount of time chasing their customers to make payments on a service or product provided to them long ago. This means that rather than investing their time in growing and developing their business, they are constantly fending-off the bank manager and often struggling to pay their employees (some reinvesting their own capital/savings) and even keep the lights on.
Our cash flow solution helps you select invoices one at a time and decide which is most pressing. Once you have reviewed, signed and returned our finance agreement, we then look to advance you up to 85% of the outstanding invoice. That means that while we deal with the debt, you can deal with the customers.
There are no hidden costs! No small print. No bugbears.
Satago not only provides the platform to manage and follow-up on your invoices, but an expert and dedicated customer service is continually on hand to answer any questions you may have.
If you have any questions, we encourage you to speak with one of our representatives and we will guide your through the Satago solution process.
Follow us on @SatagoHQ for further insight and expert advice.