If your business is getting squeezed by tight cash flow, you must take immediate action to correct that situation. Here are three things you can do right now that should help your cash flow improve.
- If you bill for work after it’s been completed, don’t be an invoice laggard. Get that invoice out the door as soon as the work is completed. No need to wait thirty days to bill. Do it now and you’ll have your payment in hand sooner.
- Get a merchant account or set your business up with PayPal so you can accept credit cards. This will cost you a few bucks, but you’ll have your money in days rather than weeks. Then all you’ll have to say to your customers is, “May I put that on your credit card?”
- Consider setting up your billing on an incremental basis. There are no rules that say you must do the work and then get paid. When you negotiate a contract, set it up so you receive a portion of the payment when you begin, another portion when you are half done and the rest when the project is complete. Setting payment milestones will go a long way in keeping the cash flowing.
Do you have other suggestions? Please leave a comment.
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