If your clients default on the payments or take too long to settle them, then it’s time to shorten your payment terms. If your due date extends to 90 days then bring it down to 45 days. It’s no secret that some clients take the entire payment term to clear the invoice. Conduct a late-payer customer analysis and create a list for the payment defaulter.
If you have strong business relations with any supplier then try to negotiate the credit terms. You can persuade them to offer you easy terms in regard to the interest rates, payment deadlines, options for installments, etc. Try to provide them with something solid in return like signing a long-term contract with them.
