Reducing Account Receivables Puts Cash in your Pocket

OED Certifed Advisor Dana Komar gives one pretty solid way to build cashflow. We could all use a little more of that, couldn't we?
Ignoring your outstanding receivables can restrict you from having enough cash flow to properly invest in your company or to pay your vendors on time. This can earn you a reputation as an unreliable business partner or result in unnecessary spending on late payment fees. If this the case, you have to make sure you are not creating the situation yourself by allowing your customers too long of a collection period compared to your payment terms. There are a few things you can do to reduce the time lag between when your customers buy the product and when you receive payment, without wasting time hassling them.

For instance, the faster you invoice them after the order, the sooner their payment deadline will be. To make this easy on yourself, email your invoices rather than using snail mail. It is important to have the exact due date the invoice, rather than just the terms. Make it easy for your customers by allowing them to pay electronically and by credit card. PayPal is a secure convenient payment method and you can put a link right in your invoice email. Also, be sure to have clear penalties for late payments. Your vendors have them, so why shouldn’t you?