Tornado release 3.23
Tornado Industries Business of the Business Advisory
Billing to Win
West Chicago, IL – Many building service contractors (BSCs) report having cash-flow problems. By the time they pay their workers, they can barely make ends meet until their customers start sending in their checks.
A likely reason for this is because many BSCs bill their customers at the end of each month. The problem with this is that the client may not pay for another 30 days.
This means the BSC has cleaned the client’s offices, paid his workers, and purchased supplies, but it may take 60 days or more before receiving a check from the customer.
This month’s Tornado Business of the Business Advisory focuses on speeding up customer payments.
According to Jolynn Kennedy, Marketing Director for Tornado, a leading manufacturer of professional cleaning equipment, BSCs should bill earlier in the month, around the 10th of the month, for services rendered.
“This way, payment will likely be received around the first week of the next month, helping to ease cash-flow problems.”
Kennedy adds that some BSCs even bill on the first of the month for the month of service to help them better manage cash flow.
She offers these additional tips for BSCs to get paid faster:
· Make sure the month of service is clearly noted on the bill
· Always add payment terms on the invoice as to when you expect to get paid, such as “NET 30” (due in 30 days)
· Make sure the invoice is clearly marked “invoice” or “bill,” is dated, and has a “bill to” section clearly listing the customer’s name
· Bill the accounts payable department directly if possible; this eliminates steps in the approval process that can speed up the payment process
· Include payment instructions such as where to mail the check
“And setting up a direct-deposit system can really speed things up,” adds Kennedy. “First-class mail service is expected to slow down this year and a direct-deposit system can shave as much as a week off the time it takes to get paid.”
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Available For Interviews And Industry Commentary:
Tornado Industries President Michael Schaffer is available for interviews and industry commentary by calling (630) 818-1300
About Tornado a Tacony Company
Tornado Industries has been engineering quality cleaning equipment for more than 80 years. The company has a long history of developing innovative products and applying the latest technology to increase productivity, reduce costs, and improve safety. Tornado prides itself on always being on the cutting edge of cleaning solutions.