As any small business owner will understand, especially event and meeting companies, there is a big difference between having lots of business booked and not having any cash flow to show for it. So, now the question becomes, how can you get paid faster, on time, early and have better overall cash flow when you need it most. Here are some ways to keep the cash coming in.
1. If you have customers who have not paid, offer them a small discount to pay it all off in full.
2. Offer customers who pay in advance an incentive to make the full payment early. This coule be a discount or bonus on their future business booked with you.
3. Build a relationship with the accounts payable department of the company that is paying you. The better relationship you have, the faster you will get paid.
4. Make sure you send them all the materials they need asap for them to pay you. The longer you wait to get them important invoices, contracts, and more the longer you will wait in the end.
5. If you have a really tough customer who won’t respond to anything, you may have to start tacking on interest to their outstanding invoice. Nobody likes to go down this path,but they are costing you money and time by not paying you and they need to understand that.
6. Find out about how long it will take for you to get paid before you have to chase them down, this way you can operate your business without having to worry about when they will finally pay you.
Joshua Gair – Impact Entertainment Services