All businesses have common goals. One of these is to generate greater profits and revenue. The only viable way to do this is by increasing sales. However, when you throw credit into the mix, problems ensue. While sales may increase, revenue may not if customers are unable to meet their payment responsibilities. Those sales then reflect in the business’ balance sheets as accounts receivable. However, if these aren’t turned into cash within a brief period, cash flow suffers. For too many companies, this is a major issue. That’s why we’re looking at the seven top ARM solutions for making cash for your accounts receivable.
Send Out Your Invoices Immediately
We know sales represent the initial step toward increasing profits. If you’re making plenty of sales but you’re lacking in profits, you probably have an invoicing issue. Customers often forget that they haven’t paid for goods or services they have received. Others just want extra time to find the money and, therefore, don’t advance their payments. The key to getting your money on time is to remind them. You can do this by sending your invoices immediately after the sale. This is a simple step, but it is a beneficial one.
Be Prepared for Excuses
Customers are experts at making excuses about why they haven’t paid your invoice. Be prepared for those excuses. Listen to them. Then, find ways to decline them. Work with your financial advisor to generate workable ARM solutions for the collection of unpaid payments.
Reorganize Your Company’s Credit Cycle
Having a longer credit cycle won’t help you receive your money. Customers simply forget about disbursing their payments over time. Especially in the case of small businesses, short-term credit periods are better. By putting proper and well-defined terms and conditions in place, a reorganized credit cycle will speed up your cash flow.
Forecast Your Cash Flow
Forecasting your cash flow will make sure you find the most likely incomes and expenditures for the months to come. This will give you an idea of when your finances are likely to run out. Then, you can take steps to make sure that scenario doesn’t arise.
Remind About Payments
Customers often forget about upcoming payments. That means that online billing software can be extremely helpful. When it appears customers may be overdue on upcoming payments, you can use the software to send out reminders. This saves staff members the time they would spend making telephone calls.
Adopt Web Portals
By adopting cutting-edge web portals, it’s possible to facilitate speedier payments. Customers appreciate the convenience of being able to pay online and via mobile devices. They can use their preferred payment methods. They can also access the portal at any time. This makes them more likely to make payments when compared with making manual payments. BillingTree’s cutting-edge payment solutions are the ideal option to help businesses receive money on time.
Luring Customers with New Features
One way to encourage timely payments is to lure customers with new features or discounts. If customers make payments within a specified period, they could receive a new feature at an equal price. Alternatively, you could offer them a discount for making an early payment.
It’s important for companies to take a proactive approach to their ARM solutions. Businesses need cash to keep flowing to survive. You can only achieve this by ensuring you receive the maximum payments. By putting these strategies in place, it’s possible to improve the number of payments you receive on time. Companies must be ready to tackle the problem of unpaid invoices to stay in business in the long term.