How To Improve Cash Flow For Your Start-up

cash flowIt’s no secret that strong and speedy cash flow is the driving force behind the growth of any start-up. If customers aren’t paying soon after they’re invoiced, you can’t afford to make the investments required to scale your business.

Unfortunately, the best way to improve cash flow is get customers to pay quickly, which isn’t easy. Especially if your company is working with other cash-strapped small businesses, you may notice your invoices are being ignored to the point where you are essentially lending customers money. In a recent post at Inc.com, User Insight CEO Eric V. Holtzclaw offered seven recommendations for getting paid faster and improving cash flow, a few of which we’ve highlighted below.

The easiest way to incentivize customers to pay you is buy offering some sort of discount for early payment. Spinning early payment a rewards program makes it a win-win program for your business and your customers. And don’t hide this offer in the fine print; make customers aware of the reward they’ll receive for prompt payment by displaying in plainly on contracts and invoices. (more…)