"Getting paid faster…What would you like on your pizza?" Article by Steve Marsten

I had always planned on writing an article about how to get paid faster and then someone did something that we would all love to do! There is a small businessman in Gladstone who was owed money from a large corporate and had all sorts of problems getting paid. He had rung and emailed, sent statements and did everything in his power to try to get his money however the corporate continued to hold out using every excuse from the “book of excuses” that you could imagine! So he devised the plan to head over to the local office and walked in just before closing time and asked to speak to the manager. They obliged. He then asked the manager what he would like on his pizza because he was about to phone in an order and would not be leaving until he received his money!

Of course this is a ballsy action and it lead to confrontation, gnashing of teeth and modicum of swearing. After an hour or so – out came the manager’s personal credit card and the payment was made for the outstanding account.

For many small businesses, few things are more important then getting paid on time. Cashflow disruption is one of the biggest issues in business. The invoice you send is by far the most important communication in regards to getting paid. Here are a few tips to keep the cash flowing.

1.       Always use please and thank you when it comes to invoicing. Good manners actually increases your chances of being paid.

2.       Make it a habit to keep your invoices consistent. Take the time to explain your invoice. Talk to your customer or client and customise it if necessary;

3.       Are you offering a discount? Some business owners object to this however it should be balanced with the time it takes to chase up outstanding debtors or ensuring that your credit policies and procedures allow you to properly vet your customers and clients before offering credit.

4.       And finally give clients options to pay. I.e. BPay, credit card or financing facilities. The more options the greater the likelihood of payment.

At Sothertons, we can show clients the best policies and procedures to maximise their cashflow. Cash is king in small business – give us a call on 4972 1300.