It doesn’t take a businessperson to know that money doesn’t grow on trees. However, if you want to make a huge success of your business efforts, you will need to know how to access cash that is rightfully yours. There are plenty of ways that money can get tied up in a company, but there are also ways of gaining access to it. Here are just a few to help keep your business afloat and your cashflow active.
Nothing is more frustrating than a late payment. Sadly, there are bound to be multiple occasions throughout your business career that clients, partners, or other individuals fail to cough up the cash that they owe on time. While you may be itching to get your hands on what you’re owed, you also don’t want to pester or hound people. So how do you go about reminding people that they owe you money while maintaining a professional demeanour? Invoices. While some individuals may purposefully avoid making payments, many will simply just be so tied up in other work affairs that they completely forget to complete a payment. An invoice is a polite reminder, detailing the goods or services that they have taken from you and how much they need to transfer in exchange for them.
Sending automated payment reminders
As well as invoices, you can make use of automated payment reminders. These are messages that can be sent out to people who you have permitted finance, paying a certain amount in small, regular payments rather than an outright lump sum. These reminders should detail the nature of the loan, how much their next payment will be and when it should be paid or will be deposited from their account. These can take the form of a text message, email, or letter.
Cash flow finance
Sometimes, transactions will take a while to process. A payment will have been made, but there’s a period that you have to bide before it will be deposited into your account. If you find that this is a regular issue and you are in need of the cash a little faster, you can engage with cash flow finance. This is essentially a finance facility that allows you to immediately access money that is otherwise tied up in sales invoices. This eliminates the problem of slow-paying accounts receivable and allows you to move on with other business deals and transactions.
Making use of savings accounts
Sometimes, you may know that money is in the pipeline, but you need a little cash to get you by in the meantime. This is when savings can come in extremely useful. Every small business should have some form of savings account, whether the amount that is stored away in it is large or small. A savings account is a deposit account which is generally held at a retail bank. It will generally have a higher interest rate than standard accounts, allowing the amount deposited to grow at a faster rate. However, you can only make withdrawals a certain number of times each year. Essentially, you are rewarded for opting to entrust a bank with your money for a longer period of time. One of these accounts can prove invaluable when times are tough or when you need to take out some cash to get you through a waiting period while you anticipate the release of funds from elsewhere.
While taking legal action to claim your money back from someone may seem extreme, there are certain cases where it is the most logical option to take and perhaps the only method of getting what you are owed. If an individual or company repeatedly ignores invoices or payment reminders, you may have to go down the legal route to reclaim what you are owed. Fortunately, if you have to go through this, you may also receive compensation for your inconvenience.
When it comes to business, if you are owed money or are waiting for money to be released, there’s a way to access cash flow to tide you over. Some people are likely to try their luck at getting some free products or services somewhere along the line, but it’s important that you don’t let them get away with it. While it may be tempting to let small sums go, as the process of gaining access to them seems like an excessive effort, it is always worth your time. Make sure to chase up everything that you are owed, as this will ensure that your business stays up and running rather than sinking into debt.
*This is a contributed post