If you have bills to pay and your bank balance is low, you might need to boost your cash flow with this simple tip.
If your cash flow often seems to need a bit of a boost because your customers always pay late, it might not be your customers’ fault…
… it’s quite possible it’s something you can fix in a jiffy.
Statistics tell us that small businesses have to wait, on average, 21 days AFTER the due date to get paid.
For invoices on 30-day net terms, that could mean waiting 11 weeks before you receive your payment! That could be why you’re always running out of cash. When you have bills to pay, you’re constantly worrying about how to boost your cash flow super-fast.
The Simple Strategy to Boost Your Cash Flow
Statistics also tell us that small business owners often delay invoicing, not ‘getting around to it’ for a week or even two.
Does that sound like you?
It takes most customers a bit of time to process and pay invoices. The longer you delay invoicing and sending out your invoice, the longer you’ll have to wait for your payment.
The longer you have to wait for payment, the less you’ll have in your bank account (and probably, the more stressed you will be).
Interestingly, there are more benefits to issuing invoices promptly than you might initially think:
1. It demonstrates to your customer that you’re a professional business that needs to get paid to continue to service its customers.
So, making sure your invoice gets paid on time is important to you – AND it’s important to them too.
2. When your invoices arrive promptly, your service is still fresh in your customers’ minds.
That seems to trigger a ‘priority’ effect with them (sometimes called the ‘recency bias’), and they are much more likely to pay you faster.
Could you boost your cash flow just by simply prioritising your invoicing too?
To your business success!
