Retrain Tardy Paying Clients to Improve Cash Flow

If you have historically allowed your clients to pay you after thirty or sixty days, you may find it hard to change their habit. Ensure you agree credit terms with your client when you initially set up an account for them to help avoid this issue. Ensure you consider any terms related to late payment fees, interest or even prompt payment discounts.

Communicating your terms and conditions to your clients

When you have agreed terms, re-iterate them to your client in writing so they are aware of when you expect them to pay you. It also makes sense to advise them how non or late payments will be addressed. For example, a three-step process may include: sending them a statement immediately their account falls due; then calling them after seven days overdue, and then referring them to a debt collection specialist after twenty-eight days.

Be firm – it’s your money!

Many small business owners are afraid to ask for payment when its due. They allow their clients to delay paying rather than risking losing clients by appearing “pushy” or too demanding. Be more assertive as your client has already received your service or goods. You’re effectively working for nothing until your paid – a sale is only a sale when you’re paid. The “squeaky wheel gets oiled first” – make sure you’re the important squeaky wheel.

Speeding up slow payers

Have you allowed your clients to pay after thirty days and now you want them to start paying after seven days? Changing their habit make require “baby steps” to improve cash flow.

Contact them much sooner and more frequently than you did previously. Call or email them after fourteen days if they’re used to paying after thirty days. Let them know your invoice is due and politely ask when they will settle your account. Or start putting pressure on a little earlier. A few days before your invoice is due send them a statement and highlight the due date. You could even call them to ensure they have received your invoice. If your client can’t (or won’t) pay your invoice in full consider taking a part-payment and giving them the option to pay in one or two instalments.

So give it a go – retrain your slow paying clients to improve your cash flow. By making a few small changes to your invoicing processes, you will be able to improve cash flow.

Tips to Set-Up Your Own Company As a Foreigner

There’s nothing like setting up an offshore company, but you also need to understand the limitations you have. The primary restriction being the laws in the foreign country, you will need to make sure the support of a legal expert. Though you can read articles and books on the business laws of your desired country, the chances of knowing them all are less.

Law, as you may know, is ever-changing and you can’t really do much about it other than keeping yourself updated with the nitty-gritty. Therefore, you must have a trusted legal partner with you who will work for your interest. Here are a few tips to help you find a good legal expert;

· Review Online Listings of the Lawyers: There are websites that give free reviews of the businesses.

· Ask for Recommendations and Referrals: Speak to your friends and family members who have had recently worked with lawyers. Ask them who they hired, what kind of service they have opted for and where they happy with the services. It is equally important to ask whether they would recommend.

· Make a List of Potential Attorneys: While doing so, jot down the attorney’s name, contact number, address and website address. This way you can organize your search.

· Review Attorney’s Website: Every website usually provides information about each attorney who is working for the firm. It is suggested to check the attorneys’ educational background as well as the work history. Typically, you should seek a lawyer with at least 3 to 5 years of experience in practicing the kind of law you need help with.

· Write out Questions about the Lawyer’s Practice: Generally, you will find the basic information about the lawyers online, say such as; how long she/he has worked and/or where and when she/he went to the law school. But there are certain areas that you will need asking questions; like not every firm states their pricing online as that may vary from one lawyer to another.

Plus you will need to know about the time frame, right? You should ask them a tentative time period for the delivery of work. Similarly, you need to ask about their availability. Ask how quickly the attorney can start working on your assignment and then decide so.

· Bring Documents to the Meeting: If you have fixed a meeting with the lawyer, he/she may ask you to bring the documents. Make sure you have them with you. Show it to the lawyer so that he can have a better understanding of your situation.