Three Payment Plans To Increase Cash Inflow For Your Business
Every business is looking for ways to cut costs and reduce cash outflows. Treat this as an opportunity.
With each passing day, the economic impact caused by the coronavirus pandemic has forced entrepreneurs and businesses to take drastic measures to cope with evolving changes and restrictions.
In a time like this, be mindful of your needs and the challenges your clients face. The slow-moving flow of cash in the current market is a pivotal obstacle to overcome.
The objective of surviving this pandemic is compromising, not sacrificing. It is about you and your client's needs. Meet both of these halfway and get a competitive advantage over the situation.
Expect the unexpected. We are in new territory. Create a bargain, and be in control of it. Securing revenue requires a new approach. The perks of choosing your business over others is what's under review.
Enforcing strict guidelines to continue your business will damage its performance. So, bring in a little more flexibility to the market. Take a step back to understand your client's financial position and the changes they are dealing with when creating your strategy.
Here are three ways you can float through the changes in the market and still influence cash inflows in your business:
1. Prompt payment rewards Every business is looking for ways to cut costs and reduce cash outflows. Treat this as an opportunity. Reach out to clients, and provide them with an incentive. Discounts within reason is a way for you to participate in relieving some of the burdens on your clients. Your support during this time will pay off in the long run. Now is an excellent time to build loyalty and trust towards your business. Use incentives as a gesture of goodwill. The objective is to get enough cash flowing inwards to meet your business expenses. Anything more contributes to cover future costs.
2. Introduce electronic payment as an option Not every business out there is in a position to pay upfront, even with an incentive. Providing your clients with multiple payment options will allow them to explore other packages in the market. Banks have recognized the stress faced by businesses. With new regulations in place, grant your clients access to these benefits. Give them the advantage over the situation to control its outcome. Instalment plans and revised interest rates are put in place to help the economy. Introducing electronic payment as an option is a right move for your business to improve your client's and your financial position. It works for today, and as a long-term payment solution.
3. Tailor your payment terms The ability to meet due dates have changed. Every penny counts. Balancing pay-outs with pay-ins is what influences financial decisions. Expecting a lumpsum payment is not feasible. Establish an agreeable payment plan. Make it affordable for your client to pay you in small lots, frequently. These days finances are monitored daily. Smaller payouts are more achievable in a sensitive market. As such, communicate with your clients about their current position. This conundrum is new to us all. Yet, its consequence is what unites us. Contact the right person and keep them involved with the new payment terms. More often than not, the person you are in touch with is not the one who initiates payments. All negotiations should include the correct contact to ensure a collective agreement. Stay alert and be smart.
To adapt and execute is our test and what's at stake. While these payment plans will keep your cash flow moving, they increase your businesses strength to lock in revenue. Be in charge, and take the first step. Reach out with a plan that works for your business.
As time unfolds, we enter a new workflow which redefines current business practices. Get on board with this new trend, and don't fall back.