th images menu user export search eye clock list list2 arrow-left untitled twitter facebook googleplus instagram cross photos entrep-logo-svg

5 tips to get your clients to pay in cash

Pointers on managing your cash flow better.
By Henry C. Ong |
<>The discretionary cash outlays are those that you plan to spend tentatively. Among discretionary outlays are office renovation, acquisition of new office equipment or hiring of additional staff.

 

Subtract total cash disbursements from your cash receipts and you get your projected net cash flow. If this comes out negative, it means you projected to have cash deficits for the period and you need to do something to keep the figure in positive territory or to at least diminish the gap between receipts and expenditures.

 

Improve Cash Collections

Encourage your customers to pay you as soon as possible. Here are some tips to increase your cash collections:

1. Offer discounts to customers who pay you before due dates.
2.  Ask customers to make down payments when they order.
3. Establish a customer credit policy that will determine credit limits.
4. Mark down slow-moving inventory to convert to cash quickly.
5. Monitor receivables regularly by identifying those that are about to become due and those that have become overdue. These items require immediate action.

ADVERTISEMENT - CONTINUE READING BELOW

 

 Manage Cash Payments

Your objective in managing cash payments is to delay them as long as possible. Here
are some tips that you can apply:

• Pay on the due date, not earlier. If a payment is due in 30 days, don\\\'t pay it in 15 days.
• Use bank checks instead of cash on the due date unless supplier requires otherwise.
• Establish a track record with your suppliers so that you could request delays
in payments in the future, if your business needs it, without them losing their trust
in you.


Latest Articles

Close