Cash flow payment

DRAFT PAYMENT TERMS TO IMPROVE CASH FLOW?

Marketing INCORPORATION

Improve cash flow

There are three steps you can take to create payment terms that will improve your cash flow.

The first is to negotiate payment dates to align inflows with outflows. By creating a time slot in which your customers must pay, you can almost always ensure an on-time payment. An example could be, how to do this is to make your customer pay three days before you are supposed to pay the supplier. This is a good way to optimize your cash flow.

Secondly, try to reduce your payment term to encourage customers to make their payment earlier. If you make the time they have to pay shorter, it could make a huge difference in the number of people paying on time.

And finally, to create recurring payment methods to encourage your customers to pay on time. An example of this would be creating a subscription service where the customers pay on a recurring basis.

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