1. Invoice promptly.
Many small businesses have a regular billing routine such as invoicing clients and/or customers at the end of the month – leaving money that could be sitting in their bank accounts improving their cash flow in someone else’s pockets! Instead of waiting to invoice, bill right away when the job is completed. If your business involves billing for hours of time, invoice twice monthly instead of once to get some of your money coming in sooner.
2. Ask for partial payment up front.
Instead of waiting to invoice until a job is completed, ask for a percentage of the bill to be paid before the work starts. For instance, you might charge 40% of the bill as a retainer or proof of good faith with the remainder due on completion of the task. Or break the bill into thirds, asking for a third before work starts, a third while the project is ongoing and a third upon completion. It’s a common business practice and one you should be taking advantage of if you can.
Read more at… sbinfocanada.about.com