Time kills cash flow.

Every day between delivering value and receiving payment costs money—in interest, opportunity cost, and operational strain.

Yet most businesses accept slow payment as "just part of doing business."

This passive approach to cash flow management leaves money trapped when it should be working in your business.

The Collection Framework:

For net 30-day terms, implement this systematic approach:

Days 35-40: Initial contact with customer

Days 45-50: Follow-up if no satisfactory response

Day 51: Send 10-day demand letter

Days 61-65: Collection agency placement

Key Success Factors:

Consistency and timeliness matter more than aggressive tactics. Professional, systematic follow-up accelerates payments without damaging relationships.

Most customers respond positively to clear communication about payment expectations and timelines.

Invoice Acceleration Strategies:

Same-day invoicing can accelerate payments by 7-14 days compared to weekly billing cycles. Automated systems eliminate human delays while ensuring consistent delivery timing.

The speed of invoice delivery directly impacts payment timing and overall financial performance.

Payment Method Optimization:

Different payment methods have varying processing speeds and customer adoption rates. Credit cards provide immediate payment but carry fees. ACH transfers reduce fees but require longer processing.



Understanding these trade-offs optimizes cash velocity for improved earnings improvement.

Milestone Billing Implementation:

Breaking large projects into smaller, billable milestones improves cash flow while reducing customer financial pressure. This approach also minimizes collection risk by reducing outstanding balances.

Early Payment Incentives:

Small discounts for prompt payment often generate positive ROI. A 2% discount for payment within 10 days typically costs less than carrying receivables for 30-45 days.

Effective cash acceleration removes friction from the payment process while maintaining professional relationships.