Posts Tagged "payments"

The Importance Of Your Payment Terms

Posted by on Aug 2, 2017 in Blog

The Importance Of Your Payment Terms

Payment terms seem such a small thing in the scheme of your business, but the reality is it couldn’t be further from the truth. Your payment terms affect your cash flow and enable you to balance the books and meet your debts. You must set your customer terms with their specific needs in minds. Just because some businesses offer 60-day terms, doesn’t mean that you have to as well. Each business is different and each has their unique set of issues which affect cash flow on a daily, weekly or monthly basis. You control your cash flow Many small businesses underestimate the power they have on their cash flow. With more and more companies paying their bills later and later, the only option many small businesses have is offering 7 or 14-day payment terms. If you offer 30-days, then businesses can in all likelihood take advantage of your time-frame and extend it even further. Sometimes challenging the norms to benefit your business is the best thing to do. 30-day terms were more popular when organisations sent their invoices by mail; as times have changed, so can the obsolete business terms. 7 to 14-day terms are more popular than you...

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