Tips for managing your cash flow…
Most businesses experience slow cash flow at some point in time. Knowing how to prevent or handle this situation can be a challenge for even the savviest business person. Here are some tips to help navigate through these choppy waters:
- Before doing business with a company check a potential customers credit references ahead of time. Have a thorough understanding of a potential customer’s businesses finances so you can find out the risk before, not after you are trying to collect on an invoice. Have the potential customer fill out a credit application and ask for bank and trade references.
- A business is not going to get paid until they invoice so bill sooner rather than later. On average companies are paid 45 days from the date they provide a service or deliver a product.
- Specify the payment terms boldly on your invoice. Typically standard payment terms are net 30 days but for some industries, terms can be as little as net 10 days.
- Don’t be afraid to ask for your money.
- Take advantage of programs and services designed to help with slow cash flow such as factoring. For a small fee factoring companies can provide cash up front for creditworthy invoices so companies don’t have to wait to be paid for their service or product.
American Receivable Corporation www.americanreceivable.com is an expert in small business finance. They provide financing programs for companies experiencing cash flow problems. For over 35 years they have helped businesses large and small find solutions to their financing needs.
Has e-commerce killed customer service?
The internet has changed the way most of us go about our daily lives. From buying on-line to banking and bill paying, we no longer have personal contact with these services as we once did. The role of customer service has changed too, as customers rely on websites and automation to fulfill roles traditionally occupied by business professionals.
e-commerce has changed many of the most important elements in the customer service process: establishing contact and providing solutions to meet a customer’s specific needs. Without this contact many web-based companies rely on attractive web pages to create interest and draw customers in. These web pages must provide customers with sound information so they are satisfied enough to place an order. Much of this is done with photos, video and written explanations.
Since it is unlikely to have verbal contact, e-commerce devised a system of automated responses. Automatic e-mails or instant messages thank customers for ordering, and confirm that the order was received. Other automatic responses can inform customers of additional steps in the order or delivery process. These responses help to prevent any reluctance a customer might be feeling about their buying decision.
Fortunately, there are still many businesses that provide face to face customer service in addition to web based sales and service. The web cannot always substitute for direct customer interaction when dealing with a variety of situations.
Companies like American Receivable Corporation www.americanreceivable.com continue to provide hands on, personal customer services even after 35 years in business. Their individual approach to customer service has made them a pioneer in factoring in the Southwest and is why they have helped hundreds of small businesses succeed and prosper .
For years small businesses have had few places to turn if they were seeking financing and were turned down by the bank. New and small businesses typically have a much harder time acquiring traditional loans to cover day-to-day operating costs much less additional cash to purchase new equipment or supplies. Fortunately factoring has taken on widespread popularity for new, emerging and tenured businesses.
Factoring companies base their decisions on the credit worthiness of their clients’ customer, the debtor, for repayment of the invoices. Almost any company is eligible for factoring provided they are able to invoice for a service performed or a product delivered. While other underwriting criteria varies from factor to factor most factoring companies adhere to the traditional screening methods.
Some factoring companies provide other services at no additional charge such as free credit reports on prospective new accounts, assistance with collection, on-line reporting, as well as monitoring and analysis services.
American Receivable Corporation www.americanreceivable.com provides financing programs for companies experiencing cash flow problems. For over 35 years they have helped businesses large and small find solutions to their financing needs.