If you run a sports or recreation club, getting paid on time by your customers can help ensure that your club functions properly and that your business flourishes. However, how can you ensure that people actually pay their bills on time? Luckily, there are some steps you can take that make the payment process easier, so that customers can easily give you what they owe, and you can spend your time focusing on providing the best services and facilities possible. Here are some of the top strategies to try.
Make payments easy for customers
One way to encourage payments by customers is to make the process as easy as possible for them. Cut through as much red tape as possible, and limit the amount of obstacles between them and payment. By incorporating direct debit payments into your payment offering, it free’s up cash handling as well as solidify’s your businesses cash flow with recurring income. By using Electronic Direct Debit Forms it allows you to electronically capture your clients direct debit authority details and put them onto a direct debit schedule. No need for unnecessary paperwork.
Agree on clear payment terms
Before your customers or members ever agree to do business with your club, make sure you get very clear on what the payment terms are. Then, have them sign an agreement. By getting members to agree to payment terms in advance, you up the chances that they understand what the terms are and that they meet them.
Set cashflow targets
Cashflow is key for ensuring that your club has enough money to function properly. Set targets for how much cash you want to have on hand, then work to make sure you meet those targets.
Establishing payment arrangement that minimises debtor days
When you create a payment arrange for clients, try to make sure that it minimises debtor days. This means that you should try to keep the days between when the client is invoiced–or when they are in debt to you–and when they pay to a minimum.
Use technology to manage cashflow
Don’t just rely on your team or yourself to manage the cash that’s coming in. Instead, rely on technology that handles processes like invoicing, payment collection, and receipt issuing. That way you can take some of the processes off of your plate and give yourself time to focus on the work that really matters.
Do not focus on profit, focus on cashflow
When focusing on your business’ finances, keep an eye on the amount of cash coming in and out rather than the profit you’
- Train an employee to monitor your cashflow
- Review banking and financial services products