3 Tips on How to Deal With Late Payments

September 1, 2021
by the
NextPay Team

Suffering from late payments?

Whether you are an industry veteran or a newcomer who is just testing the waters, receiving late payments is one of the major no-no’s you’d want to avoid as much as you can. One thing can do is by managing your cash flow efficiently through efficient money tracking and management.

Back in the day when payments were handed in cash or cashier’s checks upfront or through banks, some payments could take days, weeks, or even months before they reached your pockets. Companies needed contingency funds to offset payables just to avoid high interest rates or utility disconnections. After all of that worrying, you still have to balance your sheets all over again just to track your cash flow without any errors.  

While earning money is hard, dealing with all of your payables manually can often give you a migraine. All the worse is if you get late payments and mess up your manual accounting. If your clients are late, chances are you’ll be late with your own payments as well. Fortunately, incurring unnecessary penalties which can eat up your profit can now be avoided thanks to digital banking solutions like NextPay.

Here are some NextPay-certified tips that can help you digitally manage your accounts payables and do away with late payments:

digital business banking can help manage money securely

Manage Your Money Securely in One Digital Bank Solution

Blessed are today’s young entrepreneurs who had to go through the stress of banking in the old days. Imagine treading a terrible traffic jam as you need to make several bank deposits for payments. Then you reach the bank only to find out you’ve gone beyond banking hours. Naturally, you instantly incur interests and penalties just like that!

Back then, walking the cash flow tightrope was much harder than in today’s era of digital banking. Should you tolerate late payments from your clients considering their good standing? Should you settle your own payables earlier and risk depleting business money for your operations? Or, should you rather risk incurring fees for late-payments and offset your cash on hand for your operations?  

With the birth of digital business banks, solving these financial dilemmas has become so much easier than ever before. Now, you can remotely manage your accounts and settle your payables in real-time. With hands-free money management using our platform, you can enjoy more secure and faster transactions too. And through the magic of Blockchain, you can set up your rules via a state-of-the-art two-factor authentication method in minutes. This ensures that only those you authorize can make payments or disbursements.

digital business banking can help track your cash flow

Track Your Cash Flow and Schedule Payments More Efficiently

At NextPay, we’ve developed an efficient accounts payable system that simplifies the way you handle business money. With everything done digitally, activity logs are recorded so you’ll know where your money goes to and from. Our effective tracking system allows you to send digital invoices to your clients and customers while you track their status in real-time.

You’ll never have to deal with late collections and payments again either via our platform’s scheduling feature. Plus, you can easily offset money from your multiple bank accounts so you don’t mess up your cash flow. We offer all that and more in one versatile digital banking platform.  

digital business banking increases productivity

Foster B2B Productivity via Digital Banking

When a business tolerates late payments from clients, everything from cash flow to personnel productivity can be adversely affected. In one study, 40% of small and medium enterprises (SMEs) said that late payments contribute to the delay of hiring new talent; 39% said it postpones inventory purchase; while 36% said that late payments cut employee work hours. While it may be a necessary evil for some, late payments from clients with good standing can gravely hurt a business for the long term.

This is why we’ve designed NextPay’s digital business banking features in a way that SMEs can set up an efficient payment infrastructure for business-to-business (B2B) arrangements. By generating e-invoices, more flexible payment options such as credit, or wire transfers can be done to avoid late payments through digital channels. Our tools help business owners offer payment alternatives to their clients and do away with check payments altogether.  

On your end, you get to schedule your payments earlier without significantly disrupting your cash flow. Think about it– you not only foster good B2B relations but boost your business productivity with effective money tracking and management from the right digital bank solution.

Learn more about NextPay and how we redefine digital banking platforms in the Philippines.

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