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  • Digg it UP - Business Debts Damage SME Cashflow: How Do You Manage Late Payers Effectively to Keep Solvent?

    Business Marketing - Read Everything Your Need To Know About Small Business Marketing
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    Your invoice should show: your business name, your contact details, a description of the products and services supplied, the quantity and type of goods, the price

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    Somewhere in the first three months of running a small business, most people find that chasing late payments is a fact of their life. It is unpleasant and expensive to take non-paying customers to court. What is more, the drawn-out process distracts you from building your business. As bad debts lead to reduced cashflow and eventual bankruptcy, I take care to teach my start-up clients these easy steps to avoid late or missed payments.

    Know what you are expecting to be paid for

    The foundation to minimising bad debts is to ensure that every invoice that you issue helps your customer to pay promptly. At the time of making a sale, find out when their monthly accounts are closed and when their payments are processed then you can time your invoice to fit their payments cycle.

    Your invoice should show: your business name, your contact details, a description of the products and services supplied, the quantity and type of goods, the price

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    t. What is more, the drawn-out process distracts you from building your business. As bad debts lead to reduced cashflow and eventual bankruptcy, I take care to teach my start-up clients these easy steps to avoid late or missed payments.

    Know what you are expecting to be paid for

    The foundation to minimising bad debts is to ensure that every invoice that you issue helps your customer to pay promptly. At the time of making a sale, find out when their monthly accounts are closed and when their payments are processed then you can time your invoice to fit their payments cycle.

    Your invoice should show: your business name, your contact details, a description of the products and services supplied, the quantity and type of goods, the price

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    steps to avoid late or missed payments.

    Know what you are expecting to be paid for

    The foundation to minimising bad debts is to ensure that every invoice that you issue helps your customer to pay promptly. At the time of making a sale, find out when their monthly accounts are closed and when their payments are processed then you can time your invoice to fit their payments cycle.

    Your invoice should show: your business name, your contact details, a description of the products and services supplied, the quantity and type of goods, the price

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    r customer to pay promptly. At the time of making a sale, find out when their monthly accounts are closed and when their payments are processed then you can time your invoice to fit their payments cycle.

    Your invoice should show: your business name, your contact details, a description of the products and services supplied, the quantity and type of goods, the price

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    le.

    Your invoice should show: your business name, your contact details, a description of the products and services supplied, the quantity and type of goods, the price charged, the VAT (or sales tax) amount and your settlement terms. If the invoice is clear and carries the appropriate detail, you can quickly agree with your customer what they owe you when you deliver the goods.

    Watch your customers' accounts

    As you issue invoices, add these to your accounts so that you can regularly check what money you are owed by each customer. Be aware when any payment is overdue from a customer.

    As you network in your business community, listen out for news about your customers. Similarly, when you deliver goods or visit your customers, show an interest in their business. You need to know if your customer is struggling with an overwhelming workload, or if your customer is missing payments to other businesses beca

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