Business problems

Clients not paying on time

Businesses with a healthy cash flow – where the total cash comes in and flows out of the business without much of a disruption – tend to be better placed with regards to decision making and implementing important actions.

Delayed payments from clients can however be hugely problematic to the business. For starters, the business becomes unable to display a true picture of its actual financial standing. Yet, any financial partner, whether corporate or individual, will be interested in this financial situation before entering into any deals with you. Business partners such as shareholders want to know that they are putting their money where there are clear financial gains to expect. And cash flow is the first touch point to provide them with that picture, and an assurance that you are going to handle their money profitably; judging from your past records.

Any time clients don’t pay on time, they leave your business with financial inconsistencies that hurt your chances of landing lucrative deals. The business is likely to fall into debt to cover its recurrent expenditures and stay afloat. The business may find itself in a situation where it cannot pay off its own bills and staff wages on time. It might end up losing its best employees.

Because of these dangers of late paying clients, businesses are keen to research and choose their contracts carefully, get upfront payments or set up recurring payments as ways to circumvent this setback.

Solutions

1

Pay invoices online

With Gravity Forms and WordPress it’s possible to add a page to your website to make it easier for your clients to pay you online. Having a dedicated accounts payment page not only helps you get paid sooner, but it also makes your website look more professional.

2

SaaS

These days there’s a SaaS or Software as a Service app for just about everything from accounting to monitoring your ranking in Google. Through the effective use of the right apps you can enhance almost every aspect of your business. One of the really great benefits of a SaaS app is there is little to no initial cost, with most apps offering a free trial. This lets you take the time to test the app to make sure it’s the right fit for you.