TIPS FOR CASHFLOW ?

[elite123]

Any tips on Cashflow - ie when to set up DD's etc.

I invoice around the 25th each month and cheques come in all different times.

Any tips for days, when to chase etc without scaring repeat customers off ?

[JoyDivision]

My local business consortium is helping me with all that free of charge :).

[creospace]

I've been quite firm with regular customers that get slack. At the end of the day customers that don't pay aren't any good regardless.

Firm at the start, firm all the way through and they repsect you for it.

Gary

[Real World Hypnotherapy]

I don't allow people to have credit with me now. If someone wants a product then they pay for it before it is delivered, that way there is no need to chase people.

Otherwise I believe that 28 days is around the park that you should issue a reminder letter.

Matt

[Steve Roberts]

I know this souds simplistic, but ensure that your incomings exceed your outgoings. Eventually the cash-flow will look after itself.

[emubill]

in one of my previous businesses (wholesale greetings cards) I bought up a smaller wholesaler who had slipped with keeping firm with credit customers. I felt obliged to keep them on the same extended terms.As a result within two years of buying the business I had lost around £25,000 on these customers ceasing trade. To generate this as a profit I had to turn over about £150,000. My old customers were not a problem even though I was alot frimer with them. It was a very valuable, and somewhat costly, lesson

Nige

[bwglaw]

Any tips on Cashflow - ie when to set up DD's etc.

I invoice around the 25th each month and cheques come in all different times.

Any tips for days, when to chase etc without scaring repeat customers off ?

We invoice as soon as work is complete. Payment terms set at 14 days. We state our bank details and encourage clients to pay that way. As we deal with government and large companies this is a preferred method. We set our own Credit Control schedule of what procedure applies from date of issuing the invoice. We charge interest at 10% per month or part thereof and we have collected the interest. Being a lawyer our communications are very effective and we know when we get paid!

Our payment terms are 14 days, if we have to chase we wait until the 21st day with a telephone call. Failing this, a letter goes out on 28th applying the interest.