If your accounts receivable balances are edging up and getting older and older each month, then it might be a good time to bring out the aging reports. But what if we looked earlier in the cycle to see what we could do to collect the sales even sooner? Let’s take a look at five potential changes you can consider making that will speed up your cash flow, reduce aging receivables, and possibly reduce lending costs in your business.
1. Get paid in advance.
Getting paid in advance manifests itself in a number of ways:
- Prepaid gift cards
- Deposits
- Prepayment plans
- Monthly or project retainers
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