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Collecting Cash Before Christmas!

It can be difficult to get payments at  the best of times from your customers without having to deal with  Christmas.  Christmas often sees people spending money on presents  rather than on their due and payable accounts.  The following methods have been expertly provided by Roger Brown of NuOrder Intelligent Financial Business Consulting:

  • Send accounts early.  Sending your accounts out earlier than  normal will help you to get money in quicker and payments on time.   December may see you struggling to receive any money so send them  a.s.a.p.
  • Phone customers.  You might like to ring your customers  prior to their account being due to ensure that you will receive  payment on or around the account due date.  This could reduce the amount  of people likely to pay late.
  • Offer a Christmas discount.  As a  Christmas generosity you can provide a small discount to those  customers who pay their bill prior to the due date.  Your  discount only needs to be 1% or 2% off the total price payable which to a  customer can be a lot, especially when saving to buy their loved one  something special.
  • Deposits.  For new customers wanting to use  your business prior to Christmas you may decide to implement an initial  payment strategy which allows you to collect a portion of money from  your customer, ensuring that you have sufficient money coming into your  business.  Furthermore, if your customers are adaptable to your business  you may decide to ask for a deposit, only during the months of November  and December.
  • Part payment opportunities.  Depending on the  size of your customer accounts and orders, a part payment system might  be suitable for your business.  This system allows you to collect money  on a regular basis over a specified period of time without putting the  customer into hardship.  Again this will help you to collect funds for  your business.
  • Competition.  Again this will depend on your type  of business and what you can offer, however a competition can be setup  for account payers.  You might have a Christmas hamper or go to an  extreme such as a Christmas holiday, in which your customers will enter  free when they pay their account by the specified date.

Getting paid for your goods and services on time is important and  therefore you may need to implement some measures over the Christmas  period to ensure you receive your money when it is due and payable.

 

 

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XL Business Finance Ltd is a privately owned and independent business financing company with established links to many of the UK's leading finance houses. XL Business Finance provides a viable alternative to high street banks that lack the flexibility and imagination to provide a solution to most business users requirements. XL Business Finance can provide a full range of business financing solutions and we ensure a high level of customer service and pride ourselves on quick decisions. Our independent status will ensure any offer of funding and asset finance leasing is best suited to our customer’s needs.

XL Business Finance, Eaton Place Business Centre, 114 Washway Road, Sale, Cheshire M33 7RF UK.

 

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