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Old 31st August 2006, 09:43 AM   #1
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Join Date: Jul 2006
Posts: 164
Default Correcting Negative Cash Flow

Came across an article discussing the improvement of cash flow for home based businesses. It prompted me to become curious about the collection methods and payment terms home based business owners are using. . .and whether or not there tend to be problems collecting money owed?

If you’ve completed the work as agreed, they have no reason to delay payment, unless you put overly lenient payment terms on your invoice. For example, if you write “Net 30,” start asking for “Net 10.” Instead of waiting until the end of the month to collect, send an invoice as soon as your work is complete.
What payment terms do you find work best when providing a service or selling a product from a home based business?

And more interestingly, has anyone had to implement methods of collection or possibly even consider using a third party collection agency for slow paying customers?

Correcting Negative Cash Flow

Staci Wood | Small Business Trends Radio | Small Business Trends
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