Is Your Cash Flow Hindered by Unpaid Invoices?

Use these strategies to get paid on time so your working capital improves

Working capital constraints pose a major headwind for Australian businesses intent on growth. After all, strong cash flow drives growth. Yet, an estimated $1.87 million is lost (on average) from SME annual revenue due to cash flow shortfalls (more startling statistics in the research below).

What more could your growing business achieve with predictable working capital on hand? If cash flow improved, would you…

  • Invest in innovation?
  • Launch in a new market?
  • Extend your product line?

Improve Cash Flow for Working Capital by Improving Collections

The old adage ‘Time is money’ holds true in accounts receivables. Every day that an invoice is unpaid costs your business money.

In fact, the cost of waiting accrues.

Take the example of a company with an annual revenue of $5 million: Each day that an invoice remains uncollected costs the company $13,698.

If the same company could collect their invoices even five days faster, then an extra $$68,490 would return to the business.

By optimising the process of cash recovery, the company:

Has extra working capital
on hand each month.

Avoids high interest rates on
short-term loans to cover
the cash flow gap.

Spends less time and effort to collect
the money it has earned.

Use the 3Ds of debtor management to excel at collections

Companies that manage working capital well are typically also collection machines!

  • They have a disciplined process
  • They use data to stay aware and alert and on track
  • They are debtor-friendly

The 3Ds—Discipline, Data, Debtor-friendly—are three key principles to help any business get paid on time and protect cash flow.

Discipline
learn how to streamline your invoice-to-collection process so it’s predictable, reliable and shortens your collections cycle

Data
the KPIs that drive better credit control.

Debtor-friendly
Discover the 6 things that debtor-
friendly businesses do differently.

To find out what difference the 3Ds could make in your business:

Download eBook today

ezyCollect is purpose-built for better debtor

management

ezyCollect’s debtor management automation is purpose-built to turn your business into a collections machine.

ezyCollect is an Australian owned and operated software company that automates accounts receivables so businesses simply get paid faster. ezyCollect’s intelligent automation simply plugs and plays with your accounting software to automate, schedule and personalise your receivables in minutes. Online collections make it easy for debtors to pay you.

Using best practices in debtor management, ezyCollect is helping businesses collect twice as much money in half the time.

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