Receiving Payments

To cater for all kinds of payments received – those that are early, on time, late, or even non-existent – it’s important to have a defined accounts receivable system in place. 

Setting up the appropriate systems and procedures to encourage easy and timely payment is critical to your cash flow management.

Make it easy
Immediate payment methods for your clients include cash, cheque, BPAY®, direct debit,  EFTPOS, LockBox and credit card. Having the right payment solutions in place can mean it’s not only simpler for your clients to make payments, it can be a lot easier for you to process them.

Set the rules early on
Setting and gaining agreement on strict credit periods or trading terms at the outset, reduces the chance of ambiguity or confusion at a later date.

Carry out credit checks
Where sales are on credit, or carrying a future payment date, client credit checks should be standard procedure. Rather than carry out selective checks, it’s perhaps efficient to develop a mandatory Application for Credit form. Remember to request information such as bank details and customer references.

Receiving international payments
When selling goods or services overseas, it is important to put in place fast, secure and effective international payment solutions. See Managing Payments

Invoice efficiently
If you are completing a large and/or lengthy job for a client, progressive payments can benefit both parties. It’s also important to invoice quickly after a job is done.

Debt collection
Even if they have received a clear credit check, of course some clients will still be late in their payments. It’s important to:

• chase payments as they fall due
• be courteous but insistent
• be professional – you may get on well with a late paying customer, but it doesn’t pay to be lenient

Receivables Financing
If you simply don’t have the time to wait for your invoices to be paid, you may like to learn more about Receivables Financing – a facility which can provide you with funding in advance for your approved credit sales.

® Registered to BPAY Pty Ltd ABN 69 079 137 518

Important information about advice
As this advice has been prepared without considering your objectives, financial situation or needs, you should, before acting on the advice, consider its appropriateness to your circumstances.

QuickLine is issued by the Commonwealth Bank of Australia, view our Financial Services Guide (PDF 56kb). View a Product Disclosure Statement (PDS) for QuickLine (PDF 310kb) and consider it before making any decision about this product.