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How can I get cash payment as soon as the customer receives the invoice?
Temps de lecture : 4 minutes
Sommaire
- What is cash on delivery?
- Can cash payment be required on receipt of invoice?
- The advantages and disadvantages of cash payment on receipt of invoice
- How can I make sure I get paid as soon as I receive my invoice?
- Other cash payments
- Other possible payment terms
- What's the best way to get paid quickly?
What is cash on delivery?
Cash payment on receipt of invoice means that payment is made immediately upon receipt and validation of the invoice by the customer.
Let's take a concrete example: imagine you're buying a phone online. As soon as you see the summary on the payment page, you pay instantly, without waiting for a delay.
Can cash payment be required on receipt of invoice?
Yes, it is possible to cash payment upon receipt of invoice . To achieve this, it is essential to clearly specify this in the General Sales Conditions (GSC) du contrat or in the quotation in the absence of a contract. This practice is more common in transactions with private individuals than with professionals.
The advantages and disadvantages of cash payment on receipt of invoice
| Benefits | Disadvantages |
|---|---|
| Rapid collection of funds Reduced risk of non-payment Simplified administrative processes Clarity in transactions | Lack of flexibility Risk of undermining loyalty Less attractive to some customers |
How can I make sure I get paid as soon as I receive my invoice?
Send your invoice by email
Sending invoices by email is now the standards .
Email ensures fast, efficient reception The new regulations require the use of certified exchange platforms for electronic invoicing. This method significantly reduces payment times and improves traceability .
Use a suitable payment method
The choice of payment method is crucial to ensure prompt payment.
Le SEPA transfer gives the customer the choice of when to pay, which may not be ideal for immediate collection.
On the contrary, credit card imprint or the he direct debit mandate give the seller more control over the timing of payment, accelerating so the collection process .
Other cash payments
In addition to immediate payment on receipt of invoice, several other payment options are available:
Affacturage
Factoring enables companies to sell their invoices to a third party for immediate payment .
| Benefits | Disadvantages |
|---|---|
| Immediate cash flow Reduced payment times Simplified accounts receivable management | Service fees |
Hero offers a factoring solution that optimizes cash flow while maintaining good customer relations. The offer is flexible and 100% digital: for example, you can connect your bank flows to the tool.
Request a customized quote
Deferred payment
Deferred payment is an option where the customer agrees to pay the invoice in full at a later date.
| Benefits | Disadvantages |
|---|---|
| Flexibility for customers to manage cash flow Improved customer satisfaction thanks to more flexible payment options Potential to increase sales by making products/services more accessible | Supplier payment receipt deadlines Management of payment reminders and monitoring of receivables Higher risk of non-payment |
Commercial credit
Trade credit implies that a supplier offers a short-term customer credit .
| Benefits | Disadvantages |
|---|---|
| Strengthening B2B relationships Competitive advantage for the supplier Helps build customer loyalty | Credit risk for the supplier Need for good management |
Other possible payment terms
Request a deposit
Down payment (part of the payment is required before the start of the assignment or delivery of the product) It secures advance payment and confirms the customer's commitment. However, it can be an obstacle for some customers, requiring precise management of partial payments.
Customer credit
Le customer credit which allows buyers to pay after delivery This encourages long-term relationships and can increase sales. However, it increases the time it takes to receive funds and the risk of non-payment.
Payment by instalments
Le payment by instalments spreads the total amount over several payments. This method facilitates major purchases and improves budget management, but requires rigorous monitoring and entails a risk of non-payment of future instalments.
What's the best way to get paid quickly?
In the B2B context, the cash upon receipt of invoice can sometimes be a strain on business relationships. To get around this problem while ensuring rapid collection, alternative solutions exist.
Hero offers innovative options to speed up payments while maintaining good business relations. Here are some examples, Hero Cash offers a financing solution where companies can receive prepayment for their invoices, improving liquidity without imposing immediate payment constraints on their customers.
Request a customized quoteThese solutions not only enable faster collection, but also build long-term relationships of trust with customers by offering more flexible payment terms tailored to their needs.
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