How To Get Your Customers To Pay You On Time
As entrepreneurs we have to look for solutions every day to the problems that come our way. A business involves different aspects that we must consider, such as human resources, products, branches, marketing, logistics, and of course, finances, a fundamental part of the health of our company.
Luckily today there are different solutions for each of our business challenges. Because dealing with late payments or deferred payments from our clients is not an easy task and it is one of the pillars of the liquidity of our business, especially at the beginning of it. But how do you make your customers pay you on time?
The liquidity of a company
One of the first challenges we face as entrepreneurs is to pay for our business expenses, that is, make it financially sustainable. This means that your expenses should not exceed your income.
It seems simple, but it is an important task, especially in the beginning, when we are testing what is and what is not, when we are testing figures, sales volumes and the expenses that this business generates for us.
Moreover, the business may be profitable and that we have not realized it simply because we do not have our accounting properly organized. This occurs when we mix personal expenses with business expenses , or when we have to wait a considerable period of time to receive a payment for a product or service.
This is one of the most common scenarios: They buy from us, but the payment will arrive within 30, 90 or even more days. But, if our business is starting, perhaps our budget does not have the necessary solvency to wait for those payments, perhaps it depends on them for its operation.
What to do with installment payments?
If we delve into the reality of small and medium-sized companies, the statistics reveal that 80 percent of them have their clients as their main source of income, and if they are delayed, they can jeopardize the operation of their businesses. .
Some decide to borrow, or in turn, delay their payments with other businesses of which they are clients, turning this into a snowball that delays all the cash flow of those involved.
However, there are effective solutions that can end this problem easily and with benefits for all involved.