Businesses don’t become successful by accident. Effective business owners and managers know what’s important and crucial to their success, and they keep it top of mind.
For instance: they know that cash flow is a business’s lifeblood and it needs to flow consistently to allow growth. They also know that good cash flow goes hand in hand with effective debtor management, otherwise known as Accounts Receivable management.
We have been working with businesses for years helping them improve their cash flow and saving themselves time and stress because of this.
Here’s what we’ve learned from some of the most successful client AR experiences along the way. Sometimes the most obvious solutions can be overlooked, like these.
1. Get busy today
Chasing debtors is often pushed to the bottom of the ‘to do’ list.
The result: other businesses who have contacted this client promptly have had their invoices paid, leaving yours outstanding and late. You’ll have to wait. Again. You are back to square one, and the debtor days are mounting.
The solution: Contact your clients promptly, as soon as their invoice is due, or almost due to save you time chasing them down the track – and ensuring your invoice sits at the top of their pile.
2. Get on the phone
Are you more likely to pay a creditor who calls you and asks to be paid personally, or the one that sends a passive request via email or post? It’s a no-brainer who gets paid first. If you hate chasing debtors or don’t have the resource, consider a virtual accounts receivable service like smartAR’s Virtual Ledger Management (VLM) for cost effective, personalised service.
Our VLM team live on the phone and are trained to have the tricky conversations with our client’sslow payers. This not only saves our clients stress but also frees them up to focus on building their businesses.
3. Offer Fee Funding
Do you ever have slow payers with several overdue invoices at once? These are the perfect candidates for smartAR Fee Funding.
Fee Funding allows your business to wrap these all up, get paid in full, while your client can make smaller bite sized monthly payments, at very little extra cost. Everyone’s a winner!
To find out more about Fee Funding speak with one of our specialists at a time that works for you, contact us below.
4. Anticipate objections
Some clients will resist paying. This is guaranteed. A few will have genuine reasons (eg Something is outstanding) while others will make excuses because they don’t have the money. Make sure you are prepared with responses to common objections. If you don’t have your own script, use ours! It covers most scenarios and most importantly, it works. Request a copy below.
5. Formulate your cash flow strategy
If last year made you feel like you were chasing your tail with slow payers, you’re not alone. Remember, robust cash flow strategy is crucial for growing businesses. Get ahead of the game and set up clear terms of trade and debtor management systems to make sure this year is different.
One of our cash flow specialists may be able to help. They have years of experience and purpose built tools to assist businesses like yours improve their predictable cash flow.