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steve201
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Hi Rich

I hope you’re doing well?

Timely invoice payments are a hassle in small business in Australia because we are one of the worst at it as a country.

This opens up opportunities for invoice financing and similar schemes which tend to be very expensive in the sense the finance company will ask for a 20% fee for invoice financing.

As someone whom has managed to survive nearly 11 years in business in Australia as an accountant and financial planner, here are a few tips:

1 – Add a payment service like Stripe , Eway or Paypal, to your otherwise static invoices so that customers can pay via Debit/Credit cards, in addition to EFTs , direct into your bank account.

2 – If your accounting software allows for it – set up invoice payment reminders.

3- Probably an obvious one – but you’ll be amazed how many don’t do it, have a service agreement or engagement letter specifying terms of trade.

4 – Use debt reminder software like IODM that links directly to a debt collector if non payment is still a problem after 28 days.

Finally, I will say one thing about discounting – it is a bad idea. It always costs more to discount than the face value of the discount. A much better way is to offer added value or rewards that are cost effective for you as the supplier, but stand you in good shape with the customer you serve.

Hope this is of help?

Thank You

Steven