6 Ways to Get Cash in Your Pockets Faster

July 2, 2017 5:56 pm Published by

A lot of companies don’t want to talk about how they handle cash. They figure that if they have a good product with good pricing and deliver well that they’ll be OK. But if you’re looking to accelerate the growth of your company—to scale up your business—you’ll find that it requires cash. Let’s look at six ways to get cash in your pockets faster.

Before we jump into ways to get cash faster, you may need to change the way you look at it. The constant need for cash can catch growing businesses by surprise. Maybe you’re used to looking at your cash flow on a monthly or even a quarterly basis. That may work for the status quo but if you want to transform your business, you need to transform the way you handle cash. You should have a daily cash report so that you don’t get blindsided. Nothing will stop your growth faster than a lack of cash.

Now let’s look at some ways to get cash in your (company’s) pockets faster.

  1. Ask To Be Paid Sooner: Sounds simple, right. It is! But many companies simply don’t ask their clients to pay more quickly. Clients won’t volunteer to do this, but you’d be surprised how many will do it if you ask.
  2. Offer Incentives for Early Payment: Reward those who pay early. You may want to offer a discount for early payment. Or find another way to deliver value to clients who pay early.
  3. Process Invoices Quickly: This isn’t rocket science, but invoices that aren’t sent don’t get paid. It may be worth it for you to add staffing to process invoices so that they go out on time. The same person can be tasked with following up to ensure prompt payment.
  4. Figure Out Why Some Pay Late: A late payment may be a sign of a deeper problem. Maybe you have an unhappy customer. Take care of that because even late payment is better than no payment. Maybe your invoices are incorrect or don’t go through their systems easily. Make it easy for them to pay.
  5. Know Your Customer’s Payment Cycles: You may want to adjust your invoices so that they match your clients’ payment cycles and get paid promptly. Hitting a customer with an invoice right after bills are paid can cause delays.
  6. Shorten Your Deliver Cycle: If you can shorten the amount of time it takes you to deliver goods or services, you can invoice more quickly. There is nothing sacrosanct about “30 Days.” If your customer can use your products or services more frequently, make it happen.

Nothing sucks cash out of your company quite like growth. That means you want to be aware of the amount of cash you have on hand—and you want to take reasonable steps to get paid sooner. That influx of cash fuels your company’s growth.

If you need help with this, give me a call. I’ve got tools (and ideas) to help you get paid faster and position your company for faster growth.

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This post was written by Chuck Kocher