Small business owners say monitoring and forecasting cash is their top planned action for 2019.i Yet, owners effectively provide their customers a 39-day, interest-free loan, since the average customer pays 29 days after billing and the average business takes 10 days to generate a bill.1
Cash-focused small business owners looking to accelerate cash inflows to pay bills, build cash reserves or back growth plans should rethink the collections process and free the funds they currently “lend” to customers.
#1 Break down barriers to buying and speed the receipt of funds
Every customer’s buying journey ends in making a payment. No matter how compelling your offering may be or how quickly the customer decides to “buy”, completing a sale depends on customer payment. Forty-three percent of payments to small businesses still come by check, 1 a fraud-prone and cash flow-slowing form of payment.