Story image

How to get paid faster, without ruffling any feathers

15 Sep 2016

A healthy cash flow can be enough to make or break any business, but how do you keep your invoices in line without compromising your hard-earned relationships?

First, understand your customer

Easily accessible information from credit reporting services gives you the power to interpret any payment problems in line with historic trends, so you can bend and shift your approach. If the data shows that your customer has recent bad form when settling payments, for example, you can put tighter terms of repayment in place. Equally, if you know your client is historically good at paying the bills, you don’t have to start pulling your hair out on the first day of delays.

Agree expectations in writing

Don’t wait until payday to have the conversation – send official documents at the start of each project. Official Terms and Conditions may seem OTT, but they’re a simple way to outline how you want to be paid, how many days your customer has to pay, and what action you will take in the event of a late payment.

Don’t make it hard for someone to pay you

Sometimes the delay comes down to you – and the way you prepare your invoices. Make sure your paperwork is accurate and easy to understand, so you can limit any queries on the other end. Break down every cost and include all your bank details and contact numbers, even if you think your customer or supplier already has them.

Money talks

You’ve worked hard to establish a good working relationship with your client contact – and you may not want to undermine it with uncomfortable money talk. If you don’t have your own accounting team to keep things separate, contact theirs. This can protect your day-to-day relations while still bringing money through the door.

Article by Alastair Grigg, Head of Platform Ventures at Xero

Slack doubles down on enterprise key management
EKM adds an extra layer of protection so customers can share conversations, files, and data while still meeting their own risk mitigation requirements.
NVIDIA introduces a new breed of high-performance workstations
“Data science is one of the fastest growing fields of computer science and impacts every industry."
Apple says its new iMacs are "pretty freaking powerful"
The company has chosen the tagline “Pretty. Freaking powerful” as the tagline – and it’s not too hard to see why.
NZ ISPs issue open letter to social media giants to discuss censorship
Content sharing platforms have a duty of care to proactively monitor for harmful content, act expeditiously to remove content which is flagged to them as illegal.
Partnership brings AI maths tutor to NZ schools
“AMY can understand why students make a mistake, and then teach them what they need straight away so they don't get stuck."
Polycom & Plantronics rebrand to Poly, a new UC powerhouse
The name change comes after last year’s Plantronics acquisition of Polycom, a deal that was worth US $2 billion.
Unencrypted Gearbest database leaves over 1.5mil shoppers’ records exposed
Depending on the countries and information requirements, the data could give hackers access to online government portals, banking apps, and health insurance records.
Mozilla launches Firefox Send, an encrypted file transfer service
Mozille Firefox has launched a free encrypted file transfer service that allows people to securely share files from any web browser – not just Firefox.