2016-12-15 00:00:00 Cash Flow English Find out why prompt payment by customers is beneficial to your business and how you can encourage early payment by offering prompt payment... https://d1bkf7psx818ah.cloudfront.net/wp-content/uploads/2016/12/08213815/Store-manager-processes-prompt-payment-discount-in-artisan-shop.jpg Improve Cash Flow by Offering a Prompt Payment Discount

Improve Cash Flow by Offering a Prompt Payment Discount

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After delivering your products or services, it is important for you to get paid as early as possible. Encourage your customers to pay early by offering them prompt payment discounts. For example, you can offer a 2% discount to customers who pay within 10 days of the invoice date. Early payment is particularly important if you think there is a chance that a customer may be in financial trouble. If there is a longer wait, there is a greater risk that you might not get paid.

Customers who take forever to pay up can have negative impact on your business’s cash flow. You need the cash to pay your expenses, including salary for your employees and money you owe your vendors. If you don’t have a good cash flow, you may need to take out a loan and incur interest expenses to pay your business expenses.

References & Resources

Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.

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