Being able to plan well for cash flow in aquaculture may be something that most in the industry scoff at. There is little that is truly under your control, and the rest is up to Mother Nature. For example, you may not catch enough pounds depending on the area you set traps, you not have enough man power to set the traps based on the number of hours you’re working in the day, the weather may affect your catch, or simply the catch you’re hoping for just isn’t in season. There are so many outside factors in aquaculture cash flow that your best bet is sometimes using what you can truly rely on to your advantage. This reliable source is simply those who have purchased but haven’t paid their invoice.
You would be surprised at how much aquaculture cash flow is sitting in your unpaid invoices. Here are 4 strategies to reaching that untapped resource.
- Invoice Early
If your client receives your product and the invoice a week later, you will be long forgotten on the payment scale. For a customer to take you seriously, send the invoice as soon as they receive the product. The more quickly you stay on top of the subject, the more seriously they will take you when it comes to paying on time.
This is more than just catching up with the customer after they have gone without payment for months. You need to be keeping in constant communication with the client in order to tap into all your aquaculture cash flow. Give the customer a phone call as soon as the invoice is sent to ensure they received it, send an email a week before the invoice is due as a reminder and, finally, give them a phone call as soon as it goes past due to see why you haven’t received payment.
- Use Automated Software
Staying on top of these early invoices and communications may seem next to impossible between all the work that needs to get done. Using an automated aquaculture cash flow software can help to hit these major points, as well as stay on top of the day to day tasks in the industry. Automated software can send the invoices out for you, remind you when a customer has gone past due and keep track of all your customer communications.
- Offer Incentives
This is not always a favorite, but can be used as a last resort if customers are still paying late. Offer customers 2 percent off their invoice if they pay early. This will ensure that customers are not only paying on time, but are actually getting you that aquaculture cash flow ahead of schedule. That kind of payment date can set you ahead when it gets to prime trapping season.
There are a lot of factors you simply cannot control in aquaculture cash flow. No matter how great you are, if Mother Nature is playing against, you simply won’t be able to sell as much. In order to stay afloat, you need to tap into those who have already received your product but haven’t held to their end of the bargain.