Incredible Considerations On Shifting Business Payment Structure For Faster Cash

If you find yourself in the uncomfortable position of being broke, it can be very difficult to wait for hard-earned cash to physically show up in your bank. A Cash flow can be a very difficult thing to manage and you might find that your business is technically doing well, but you still feel "cash poor." Does this sound familiar to you as a business owner? Then these tips may be for you. All you may need to do is make a few little adjustments to the way that you structure your payments and you might find that profits come in a lot sooner than they used to.

Your online business may be unique, but undoubtedly customers will pay you according to a variety of different schedules and procedures. Also, keep in mind that an "on point" virtual assistant business can help you with all the details, moving forward.

Think about some of these options to help you get that much-needed cash when you need it most.

1. Ask for advance payment. If you are providing a service, like ghostwriting, ask for half of the balance upfront before any work is done. That way you have insurance that the customer won’t disappear without paying, plus you can remain liquid between project assignment and project completion. This works best, obviously with new clients. If you try and implement this policy with long-term clients, they may not be so accommodating. (Use an option below with those clients.)

2. Pre-sell your services in a bundle. This is how those movie websites do what they do. If a potential blockbuster is coming up for release in a month’s time, they will give you a low price if you order in advance. They get the money in advance, and you get the movie as soon as it hits the streets. The same technique can work for your services when you generate enough interest and anticipation. And to take advantage of this quickly, seriously consider taking on a solo run virtual assistant business, or even a virtual assistant business with a team to maximise your efforts in a very short span of time.

As an example, a Virtual Assistant could put forward a deal for 10 hours of work for $150 when paid in advance, which represents a $100 discount off the normal rate of $25 per hour.

3. Offer a break on overdue balances. Everybody wants to avoid those collection calls when invoices are past due. On outstanding balances of thirty days or more, give the client a five or ten percent discount to pay their entire balance right then. In this way, you will get 90% or more of what they owe you. It's best to settle for a slightly lower amount sometimes, so that you see at least some of the money that is outstanding.

4. When does the balance become due to you? Instead of giving customers thirty days to pay, shorten it to fifteen. Lay this out specifically in the terms of the contract so even if they don’t read it you are covered. You might find that some clients are more than keen to pay the entire amount upfront, if it helps them to avoid any kind of service charge or finance cost.

5. Send invoices out at the start of the month. For service based businesses where payment dates fall once a month for recurring customers, why wait until the end of the month? Invoice early so that you have more cash to use for whatever may come up during the month.

Are you looking for ways to raise cash for your business? You don’t always have to look to outside sources or create new products or services for the answers. Find ways to revamp your payment structure and outstanding invoices to get the money that you are due.