Small business cash flow depends greatly on prompt invoice payment. You should also always issue your invoices as soon as possible, and providing a detailed invoice to arrive with your product or service can speed up customer payments. Below we share some tips from Business Queensland.
What To Include On An Invoice
Make sure your invoice is accurate, easy to understand, and includes the following:
- summary of the total payment amount
- the due date
- how to pay the invoice
- a clear description of goods or services provided
- details of any agreed discounts and how you determined them
- information about any outstanding payments
- delivery charges if applicable
- period of work invoice refers to (if relevant)
- legal requirements, such as your ABN and the GST amount
- contact phone number for any queries
Handle any queries about the invoice or payment fairly and quickly.
Techniques To Speed Up Payments
- Confirm correct location and contact details so your invoices reach the right person.
- State clearly on your invoice that you reserve the right to charge a set late fee for overdue invoices.
- Before sending an amended invoice, contact the customer and tell them what corrections or adjustments you are making and why.
- Quote any relevant customer reference number they have provided to you, or you have provided to them.
About Us – Nova
If you need assistance with your business cash flow, we offer a reliable invoice factoring facility and are committed to the growth of small and mid-sized businesses. Invoice factoring is a cash flow finance solution that allows businesses to access a large percentage of the funds held in their unpaid sales invoices. Your business can enjoy the benefits of the cash flow of the invoice before your customer pays it.
Most small businesses need a line of credit or overdraft, which can take weeks for approval, to keep operating and enable the business to grow. Invoice factoring is different because you do not have a ‘loan’ as such, and you do not need to secure your funding with property. Your customer invoices act as your security, and approval can be within 24 hours!
If you have any questions reach out to us for an obligation-free chat.
(Source: Business Queensland, Queensland Government 2021)