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Helpful news, tips and business advice for small to medium business owners about how to maximise profit, minimise waste and grow and protect your business.

PSA shares How to Maintain Business Cash Flow While Waiting for Customer Payment

How to Maintain Business Cash Flow While Waiting for Customer Payment

Running a business can sometimes feel like a juggling act, especially when you’re playing the waiting game with customer payments. But there’s no need to let the cash flow conundrum dampen your spirits or your business operations. At PSA Capital Investments, we understand how challenging it can be to maintain business cash flow when you’ve still not been paid by customers. So, here’s how you can keep the cash rolling in, even when customers are dragging their feet.

Take Charge of Your Cash Flow, Even When Payments Lag

Create Clear Payment Terms Up Front

The easiest way to maintain business cash flow is to start off on the right foot with clear payment terms. Be upfront about when and how you expect to be paid, and make these terms crystal clear from the get-go. It sets the stage for a professional relationship and reduces the chance of misunderstandings later on.

Offer Multiple Payment Options

Make it as easy as possible for your customers to pay you. By offering various payment methods, you’re catering to different preferences and potentially speeding up the process.

Early Payment Incentives

Consider offering a small discount for early payment. It’s a win-win: your customer saves a bit, and you get that cash flow boost without the long wait.

Regular Invoice Audits

Keep on top of your invoicing with regular audits. Ensuring that invoices are sent on time, and tracking which ones are outstanding, can give you a clearer picture of your cash flow situation.

Negotiate Payment Plans

If a customer truly can’t pay upfront, be flexible where you can and offer a payment plan. It’s better to have a steady trickle of cash than none at all.

Legal Protection

Use contracts and agreements to protect your business legally. Having customers sign a contract that includes your payment terms can give you legal leverage if things go south.

For When the Going Gets Tough

Re-evaluate Your Expenses & Monitor Your Cash Flow

Take a good look at your current expenses and see where you can tighten the belt. This isn’t just about cutting costs; it’s about making strategic decisions that could free up cash flow. Then, keep a close eye on your cash flow forecast. Monitoring this can help you anticipate and prepare for the impact of late payments.

Consider Asset Finance 

If you’ve got assets, you might have cash waiting to be unlocked. Asset financing can provide a lifeline by using the value of what you already own. 

Have a Contingency Plan

Always have a backup plan. Whether it’s an emergency fund or an untapped line of credit, make sure you have something to fall back on. 

PSA’s Personalised Lending Solutions

We’re not your average lender. We get that each business has its unique challenges, which is why we offer personalised lending solutions when the banks won’t budge. Whether you need help to maintain business cash flow while you wait on payments or you’re looking to seize a growth opportunity, we’re here for you.

Our approach is simple: we listen, we understand, and we deliver solutions that work for you. Because at the end of the day, it’s about keeping your business on track and cash flow positive – no matter what your customers are up to. 

Need to improve your credit score or discuss your eligibility for a non-conforming loan? We can help you with that, too.

Let’s Get Your Cash Flowing

Don’t let slow payments slow you down. With the right strategies and PSA Capital Investments by your side, you can navigate the ebbs and flows and maintain business cash flow with ease. Get in touch with us on (03) 9847 7689 and let’s tailor a solution to keep your business thriving today and every day after.

Author picture

PSA’s Director, Peter Marmara-Stewart, is a highly successful business owner and finance professional in Melbourne. As a certified Financial Planner with over 15 years of experience in business finance, accounting, and asset management, he provides clients with unparalleled expertise in asset protection, debt elimination and business restructuring. Call (03) 9847 7689 and see how Peter and the PSA team can help you get on the smarter path to financial returns.