News 4 Buzz – Learn hints and techniques.

    Subscribe to Updates

    Get the latest creative news from FooBar about art, design and business.

    What's Hot

    5 Best Fantasy Cricket Apps in India to Earn Real Cash

    April 20, 2023

    How to Play Poker Like a Pro: Tips and Strategies for Winning Big

    April 4, 2023

    Comfort and Style: The Perfect Bean Bag Chairs for Kids!

    March 3, 2023
    Facebook Twitter Instagram
    • Locate Us
    Facebook Twitter Instagram YouTube
    News 4 Buzz – Learn hints and techniques.
    Demo
    • Home
    • Automotive
    • Business
    • CBD
    • Crypto
    • Education
    • Fashion
    • Finance
    • Health
    • More
      • Home Improvement
      • Entertainment
      • Law \ Legal
      • News
      • Shopping
      • Sports
      • Technology
      • Travel
    News 4 Buzz – Learn hints and techniques.
    Home»Shopping»Finance expert: How to speed up payments of invoices
    Shopping

    Finance expert: How to speed up payments of invoices

    By No Comments3 Mins Read
    Facebook Twitter Pinterest Reddit LinkedIn Tumblr Email
    Share
    Facebook Twitter Pinterest Reddit Email

    [ad_1]

    Businesses are being encouraged to review their debtor payment systems and put in place measures to speed up the payment of outstanding invoices by leading finance expert and Earlypay CEO, Daniel Riley.

    “Unfortunately poor cash flow is often not a symptom of lack of sales, but a result of poor debtor management,” Riley said.

    “Many businesses fail due to cashflow issues because they have not put systems in place to properly manage the fast payment of customer invoices. With businesses under pressure due to inflation, rising costs and labour shortages, cash flow is becoming a bigger issue and is sending many businesses to the wall.”

    A recent Xero report found that over 50% of all invoices sent by businesses to customers are being paid late by an average of 23 days.  

    “While bigger businesses have the capacity to soak up these late payments, small businesses with lower cashflow do not. Small to medium size businesses urgently need to act to improve their systems and put new measures in place to claw back late payments,” Riley said.

    Riley has outlined tips on how to get payments in the door faster.

    Review the late payments

    “Business owners need to take immediate action and review all late payments over a six to 12-month period. Understand which businesses are paying late, by how much time and why. Once you have this information in front of you, you are then able to determine how to respond.”

    Adjust invoice dates and payment modes

    “Where necessary, adjust invoicing dates for customers. This is important and ensures that payment timelines are adjusted to tighten the period in which customers must pay their bills. Actions can include invoicing certain customers earlier allowing more time to pay, or reducing the amount of time they are given to pay.

    “If some customers have been working on 14-day payment terms and are regularly late to pay their invoices, reduce the payment period to seven days. Add additional payment modes to reduce the ability for customers to delay payment due to bank transfers and other issues. The more payment modes, the easier it is for them to pay.”

    Set up automatic reminders

    “Systems such as Xero enable you to set up automatic reminders when invoices become overdue. Utilise these features to automatically do the work for you. This will prompt customers and should help to get payments in the door faster.”

    Add late payment fees

    “While not a popular feature of debtor management, it is an effective one. Late payment fees usually encourage customers to pay on time or reduce the number of days they pay late. Sliding scales of late payment fees are also helpful in incentivising fast payment.”

    Outsource debtor management

    “Debtor management is a time intensive activity and one that needs to be undertaken with care and courtesy. Invoice Finance is one of the fastest growing finance products in the country because it provides upfront payments to businesses for the invoices they generate and can hand over debtor management to the financial organisation, in some cases. The cost is also negligible.”



    [ad_2]

    Source link

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Reddit Email
    Previous ArticleUkraine Soldiers Troll Russian Army By Playing Dead; Russia Thought It Was Real
    Next Article Most Touching Tributes To Queen Elizabeth II On Twitter

    Related Posts

    Eight in 10 small business owners are optimistic about 2023

    February 1, 2023

    Sydney small business owner empowers women and sustainable fashion

    January 31, 2023

    Tenable urges fashion brands to strengthen their cyber defences

    January 31, 2023

    Salesforce research shows Australians demand improved brand experiences

    January 31, 2023

    Coinbase Wallet integrates Shping shopping app

    January 31, 2023

    Riskified unveils next generation Policy Protect product

    January 31, 2023
    Add A Comment

    Comments are closed.

    Editors Picks

    5 Best Fantasy Cricket Apps in India to Earn Real Cash

    April 20, 2023

    How to Play Poker Like a Pro: Tips and Strategies for Winning Big

    April 4, 2023

    Comfort and Style: The Perfect Bean Bag Chairs for Kids!

    March 3, 2023

    Concert picks: Feb. 1 – 7

    February 1, 2023
    Recent Posts
    • 5 Best Fantasy Cricket Apps in India to Earn Real Cash
    • How to Play Poker Like a Pro: Tips and Strategies for Winning Big
    • Comfort and Style: The Perfect Bean Bag Chairs for Kids!
    • Concert picks: Feb. 1 – 7
    • Azam Khan And Naseem Shah Involved In A Massive Fight In Bangladesh Premier League
    Archives
    • April 2023
    • March 2023
    • February 2023
    • January 2023
    • December 2022
    • November 2022
    • October 2022
    • September 2022
    • August 2022
    • July 2022
    • June 2022
    • July 2021
    Facebook Twitter Instagram Pinterest
    • Locate Us
    © 2022 - News 4 Buzz - All Rights Reserved.

    Type above and press Enter to search. Press Esc to cancel.