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How to improve cash flow with smart sales and better customers

By Alistair Lamond on 18 February 2016

Failure to effectively collect on your invoices can crush cash flow and lead to the demise of your business. Dun & Bradstreet Trade Payments Analysis shows the average invoice payment period is currently 50.4 days, whilst 41% of companies that went insolvent in 2013 had money owed to them by their customers.

In the first part of the "Show Me The Money" series, we looked at some resources you can use to qualify leads quickly and easily to ensure you don't deal with customers that potentially won't pay you for your hard earned work.

This chapter, we look at a market leading sales methodology for how to improve cash flow that will not only ensure you convert customers but increase your chances of negotiating fair and just terms.

Credit check: which customers are good for business and cash flow

By Alistair Lamond on 4 February 2016

As the 1st part of the 'Show Me The Money' blog series, we are going to focus on understanding on 'which customers are good for business and cash flow'.

Too often businesses trade themselves into insolvency as they don’t manage the most important part of the trade cycle - getting paid. 60% of Australian SMEs are unlikely to get paid after 30 days. Failure to effectively collect on your invoices can crush cash flow and lead to the demise of your business.

Dedicating more time and labour into invoice collection will always yield results by decreasing days outstanding. This may be best managed by employing a collections officer, outsourcing to a bookkeeper or, if you are factoring, passing the responsibility to them to collect on your behalf. When deciding which option to go with, the most important factor to consider is the customer relationship. It is imperative that your relationship with your customer is never impacted by the actions of invoice collection.