At Scottish Pacific, we help SMEs improve cash flow through targeted and customised strategies. Our top tips for managing cash flow include:
1. Invoice earlier than usual, and consider deposits and discounts
Send invoices as early as possible, as the sooner your payment terms kick in, the sooner your customers are required to pay. Break invoices into staged payments (e.g. a 20% deposit at the start of a project, with the remainder owed upon completion), and think about rewarding customers with a discount for early payment.
2. Proactively deal with potential late payers
If a client is tardy with their payments, take action as soon as a payment is late. Contact clients as a courtesy a few days before invoices are due to make sure your invoices are in their system and ready to be processed. For new customers, seek a reference check from their other suppliers.
3. Offer more ways to pay
Give customers more flexibility and make it easier for them to pay you by extending your payment options to include electronic debit and credit cards, Paywave or PayPal. By offering customers their preferred payment method, you’ll boost your chances of being paid on time.
Want to learn more?
For more financial tips, download our whitepaper: Surviving Cash Flow Challenges. Creating cash flow: your guide to navigating today’s common cash flow challenges through the learnings of Australia’s fast growing SMEs.
Whether you are looking to expand, boost working capital, improve your day to day cash flow, Scottish Pacific has a range of debtor finance and trade facilities can help you.
To find out more call us today on 1300 298 708 or submit your enquiry online here.
Established in 1988, Scottish Pacific Business Finance is Australia and New Zealand’s largest specialist provider of working capital solutions with a comprehensive range of invoice finance and trade finance facilities.
Access to experienced decision makers
Our executive management team has more than 100 years of small business finance experience, and we have fully-operational offices in Sydney, Melbourne, Brisbane, Perth and Auckland with each headed up by a local General Manager. Our clients and introducers enjoy a level of access to decision makers that is unmatched in the industry.
Endorsed by recommendation
More than 80% of all our new clients are referred to us by accountants, banks, commercial finance brokers and other business advisers. We have hundreds of such sponsors willing to recommend our services; a clear sign that we are the best in the industry.