Cash flow tips from a factoring company Thursday, October 16, 2008
Here are some tips on how to get our invoices paid quicker and improve your cash flow. As a factoring provider, we are experts in getting your invoices paid first.
1. Check to make sure who the correct person is in the company that is supposed to approve your invoice and make sure you send it directly to them for approval.
2. Ask the customer if they are happy with the invoice and if it is approved for payment. Make sure your invoice is in the correct format that they like. This means make sure it has a purchase order on it if that is required.
3. If trading terms are 30 days and you have not received payment as promised, give your customer’s accounts department a call to find out what is delaying payment. It is at this point you might find out if they have lost your invoice or if there is a problem.
Some of our clients are a little reluctant to follow up on overdue invoices. We take the view that if you have fulfilled your promise as a supplier, then your customer should deliver on what they promised to give you in return i.e. payment within a specific time frame.