5 Steps For Improving your cashflow in 2021 from Chamber service provider itsettled
15th January 2021
A good cash flow is vital to the health of your business. Not only does it allow you to reinvest, but it also stops you falling into uncontrollable debt.
By following these five helpful tips, you can improve your cash flow, and grow your business in 2021.
- Make sure you have the basic details right. When invoicing, make sure to check that your invoice has been received. You won’t be paid if your customer hasn’t even received their invoice! Make sure you have the correct contact details from the beginning.
- Check your customers credit reports.Before taking on new customers on credit, think about running a credit check. This can be done through different software and you can purchase status reports from credit agencies. They’re not going to be a good customer if they never pay you on time.
- Make sure you have a good debt collection system in place.Having a legally compliant debt collection system in place which is easy and instinctive to use is an essential. Make sure you know what you can legally say when an invoice is overdue. With a system like ItSettled you know that every letter you send post-due date is legally compliant and designed to retain the customer whilst still gaining your money.
- Establish good relationships with suppliers.If you have a good relationship with your suppliers, you can ask for discounts on bulk purchases. Pay your suppliers on time, or offer to pay early in exchange for a discount. Having a good relationship will ensure your business is one that they value, and vice versa.
- Get your credit control done first. Finally, make sure you spend a few minutes of each day on credit control - don’t leave it all until the last minute. This way, you can get it out of the way and spend more time focusing on what you need to do to make your business thrive. With an app like ItSettled, you can trust that your credit control system is legally compliant, customer-friendly, and based on successful practice.
Members of Sheffield Chamber can trial itsettled for free and receive an exclusive 20% off subscription rates. For more information, call Sheffield Chamber on 0114 201 8888 or email firstname.lastname@example.org.