You have just landed a new customer - congratulations on your growing business.
Before you start accruing expenses and ramping up your team to engage, there are a
few key steps you’ll need to take to ensure the transparency and timing on your new
revenue. It may take several months before you receive the first payment, but you need
to start the work right away. Below we’ve outlined how to secure payment on your new
Confirm payment expectations together
Before you sign a contract with your new customer, ensure that you, or the person at your company in charge of finance, explain your company’s invoicing and billing policies. It is important to set clear expectations right from the start.
It is imperative to review all the details for processing invoices. Confirm you have the correct contact person to receive them. Oftentimes it is an Accounts Payable contact, not your day to day contact or even the decision maker. Note the day of the month you send invoices and the terms for payment. If there is a fee or interest charged on late payments, be sure to clearly note these guidelines and discuss them.
Offer several payment methods
Writing checks is no longer the only option for payment of invoices today. Expand the list of payment methods to your customers as another way to encourage your clients to pay you more quickly. Checks are becoming a thing of the past and corporate credit cards are now standard in most industries. In addition, electronic payments are much more secure than paper checks and can’t be lost in the mail.
Leverage invoice factoring
If you have short term cash flow needs, invoice factoring is a fast payment processing option to leverage with customer invoices. By getting your invoices cleared faster, you infuse more cash in your operation. More cash means more ability to grow and easier scaling. Outsourced payment processing keeps your business running smoothly while you grow.
Let BAM make running your business easier
At the end of the day, managing cash flow is the critical factor in building your business. BAM has been helping businesses free up their cash flow with invoice processing. One-click funding and approvals in under 24 hours gives our customers immediate access to working capital. Call us today to learn how we can help you.