An informative article written by Max Newnham, entitled: Knuckle down on cash flow terms gives some practical advice for business owners who are struggling to keep a healthy cash flow.
For the benefit of our business owner readership, PRN Funding condensed the article down to it’s main points:
Too often, business owners focus primarily on sales and fail to administer and manage their companies appropriately. As a result, invoices oftentimes go out late, and there is rarely any follow-up on overdue invoices.
In order to prevent the above situation, small business owners should be upfront about payment terms and late-payment penalties before agreeing to take on new business.
Furthermore, companies should set credit limits for new accounts and monitor how much business is being done. If it jumps significantly, the payment terms should be re-visited and possibly re-negotiated.
Next, when it comes to collecting, small business owners will be more productive by making phone calls than sending out threatening letters or statements with stickers.
It’s comforting to know that out of all the suggested small business tactics for managing cash flow, PRN Funding is able to assist with each of these steps. Contact us today for more information on our invoice funding services.