6 steps to protect the cash flow of your business if you offer services
Here are some tips that you can implement in your business if you provide services, and that will help you directly or indirectly to get paid in a more predictable and secure way.
As soon as you deliver your product or service, issue the invoice to ensure that the invoice due date is as soon as possible. Every day counts!
2. Review your billing process
Define a process that guarantees certainty in order to avoid possible future errors that may result in a delay in payment, but at the same time seeks immediacy, even if it implies greater inefficiency. Getting used to a last check before launching the invoice and “stopping everything” (within limits…) to let the invoice be sent as soon as possible will help you to achieve it.
3. Negotiate a down payment
Before starting a project. Even if successful, it offers a refund if the service is unsuccessful. However, keep in mind that if you are successful, you may have to return the payment to your client if you are unable to provide the service satisfactorily. To do so, it will be appropriate for you to review with your legal advisor the conditions to be signed with the client so that you are adequately covered.
4. Divide projects into several milestones
And negotiate the issuance of a partial invoice for the completion of each milestone. It’s a very common practice in the marketplace, and your customer will generally understand it as long as the milestones make sense.
5. Send invoices with a payment button
There are several online payment platforms that allow you to generate a link where the customer accesses and the details appear to make the payment of the invoice online. Facilitating payment on the spot is always a good idea.
6. Add monthly subscription services
The monthly subscription is one of the most financially attractive business models, since it generally allows you to have a recurring and generally predictable income from each client, and in many cases it is easy to negotiate payment within a few days of invoice issuance, or payment by credit card at the time of contracting.