Money can affect any relationship – both personal and professional. And it is the SME business owners like you who do not want to compromise their relationships with vendors or customers.
How can you avoid affecting your relationship with your vendors when you don’t have the funds to pay bills on time?
How can you ask your customers to make timely payment without damaging your relationship with them?
What would you do as a small business owner?
Try these secrets:
Pay bills on time
Always make it a point to pay your bills on time. In order to make sure that you never miss a bill payment, set up automatic payments. If you want to improve your credibility and credit scores, making the timely payment would go a long way. Contractors, as well as vendors, appreciate on-time payments and you may even get preference over other businesses.
Set up payment terms that are mutually beneficial
In case your customer wants you to work on a large project but refuses to pay an initial deposit, you can negotiate the progress payments. Once you reach the pre-agreed milestone, you may get partial payment which is enough to cover projects and overhead costs. This will keep both your customers and your vendors happy.
Now, who doesn’t love discounts? If your customers pay on time, offer them discounts. They will not miss out on this great opportunity of getting discounts. It will be a win-win situation for both you and them.
Get paid exactly when you require
Are you still struggling to get paid by your customers so that you can pay your vendors or suppliers? Invoice factoring can be considered as an effective and easy way to manage your cash flow while improving and maintaining your business relationships.
All you have to do is upload your invoices to FRENNS platform and get paid within an hour once the auction closes. We offer up to 99% of the invoiced amount. Once FRENNS collect the full payment from your customers, FRENNS will pay you the remaining money minus the factoring fee. So, in the end, you get the cash that you need to pay your suppliers or vendors quickly.
Ready to get started? Finance your invoices with FRENNS today!
About the Author: Per Frennbro is the CEO of FRENNS, which offers high speed, low cost invoice financing for small businesses. As a serial entrepreneur, Per focuses on helping both small and medium sized businesses take control of their cash flow. Visit https://www.frenns.com and see how you can turn your invoices into working capital to help your business prosper.