Best Practices for Collecting Business Payments

Every day you reduce collection time is worth 365 days of improved cash flow. Let me show you the maths. Current state: $100,000 monthly revenue, 60-day collection time. Outstanding invoices: $200,000 (two months sitting there). Reduce collection by 20%: 60 days becomes 48 days. Cash released immediately: $40,000. You didn't make more sales. You didn't cut costs. You collected $40,000 faster by implementing systematic processes. The acceleration strategies that work: Invoice the same day work completes. Not Friday. Not the month-end. Same day. Add payment links to every invoice. One-click payment increases collection speed by 23%. Call before invoicing on projects over $10,000. Confirm satisfaction, address issues, create commitment. Set up automated reminder sequences at days 7, 14, 21, and 30. Friendly but systematic. Offer 2% discount for payment within 7 days on large invoices. Costs you $200 on a $10,000 invoice. Saves you $197 in opportunity cost. A business reduced collection from 67 days to 23 days in 90 days using this system. Released $86,000 in cash without changing anything else. Most businesses focus on growing revenue. Smart businesses focus on collecting faster.

Recurring Payments: What Every Business Should Know. 👇 If your business offers subscriptions or repeat billing, recurring payments are the lifeblood of your cash flow, but getting them right is about more than just charging a card every month. Here’s what you should consider when setting up or scaling recurring payments: ✅ Support for All Major Payment Methods To reduce friction and increase conversions, offer a range of payment options including: ➡️ Cards: Visa, Mastercard, American Express, Discover ➡️ Direct Debit: A stable, trusted method with strong consumer protection ➡️ Pay by Bank: Increasingly popular for those who prefer instant, account-to-account payments, variable recurring payments remain a work in progress in the retail environment ➡️ Digital Wallets: Apple Pay and others now support recurring billing, ideal for mobile-first customers and at the click of a button 🔄 Ease of Cancellation = Trust Make it easy for customers to cancel. Why? ➡️ Reduces disputes and chargebacks ➡️ Builds long-term brand trust ➡️ Encourages them to return later, rather than churn out frustrated ➡️ Transparency and ease are key to a sustainable recurring model 🔧 Smart Tech Behind the Scenes: Updater Services & Network Tokens Card expirations and replacements used to be a big problem, but now? 🔹 Account updater services (like Visa Account Updater and Mastercard Automatic Billing Updater) automatically update stored card details when a card is replaced or renewed, reducing failed payments and involuntary churn. 🔹 Network tokens take this a step further. They replace card details with a secure, tokenised version that stays valid even when the underlying card changes, offering higher authorisation rates and enhanced security. Together, these innovations keep your billing cycle smooth and your customer experience seamless. 🧠 Why Stability Still Matters Direct debit may feel “old school,” but it remains: ➡️ Exceptionally reliable ➡️ Protected by strong consumer guarantees ➡️ Ideal as a trusted fallback or even primary option in certain markets Combining modern flexibility with stable, regulated solutions is often the smartest approach for long-term success. Recurring payments are not just a billing method, they’re a customer experience. Make it seamless, secure, and adaptable, and your revenue (and reputation) will thank you.

I’ve started this week with overdue payments from two clients. At first glance, collections may sound like a finance team problem, but in reality, they have everything to do with growth. Why? Because cash flow discipline determines whether your business runs sustainably or stumbles despite great work. In India, delayed payments often have less to do with project scope or billing schedules and more to do with how clients prioritize their cash flow over yours. The question is: how do you safeguard your business without alienating relationships? A few lessons I’ve learnt the hard way: 1. Set expectations twice, not once Over a decade ago, a colleague and I went to collect a pending payment under ₹5 lakh. The client refused, claiming the service didn’t meet expectations. The real issue? The engagement letter had been signed by a Partner, who was absent until the deliverable was presented. The client assumed the Partner would be involved throughout. We eventually collected payment after three painful months. Lesson: confirm expectations when signing and again at project kickoff—don’t leave room for assumptions. 2. Contracts must be watertight—and reinforced Clients who overlook payment terms and insist you start projects “on goodwill” are often the ones who later argue over technicalities. Only strong contracts—and periodic reinforcement of those terms—work. Monthly billing can also de-risk project-based engagements. 3. Always know the escalation path In government and large enterprise contracts, relying on one single point of contact (SPOC) is risky. I’ve seen payments delayed by a year simply because the SPOC was evasive, and we didn’t know who else to approach. Mapping the escalation matrix upfront helps avoid these bottlenecks. And if, despite all this, a client still doesn’t pay? Then it’s not a client, it’s a liability. Pick clients who pay—even if the work is less glamorous. If you want “interesting work” at all costs, be ready for the possibility that it might also be unpaid work. Here’s the bigger truth: collections are also a strategy. The clients you choose, the terms you enforce, and the discipline you bring to cash flow management directly shape whether you grow sustainably or stumble despite great work. #BusinessGrowth #CashFlowManagement #ClientManagement #LeadershipInsights #GrowthIsDiscipline #CashFlowTruths

Building a Payment Service from Scratch - What I Learned as a Founder When we started building the payment system at takeUforward, I thought it would be simple, just integrate Razorpay/Paypal and move on. But once we went deeper, it turned into a full product within a product. Payments are about reliability, data integrity, and how gracefully your system behaves under pressure. Here’s what we learned 👇 - Don’t build only for “plans”, design for plan entities in your schema so upgrades/bundles/emi’s/future standalone offerings are easier to integrate - Support multiple validity periods within the same flow. - Implement an Adapter Pattern so gateways like Razorpay, PayPal, or Stripe can be swapped without touching business logic. - Keep a transaction_id as the single source of truth and design every API around it (create, capture, refund, audit) - Log everything, and store gateway response for future auditing - Ensure idempotency for every payment and refund API - a single retry shouldn’t double charge a user - Run all external calls async using background jobs or message queues to avoid blocking the user flow - Integrate refund callbacks with GST reversal logic to maintain accurate tax credits - Implement signature validation and webhook verification to avoid spoofed callbacks - Support EMI and split payments, each transaction linked via a parent-child hierarchy - Build monitoring dashboards for transaction latency, failure rates, and P95 response times - Use feature flags to roll out new gateways or payment logic gradually - Integrate third party sales - Integrate other product sales on our platform, manage taxes for them. These things sound overkill at the start, until you hit scale and realize why systems like Stripe and Razorpay obsess over these details. 💡 Check out TUF+ - we’ve covered OOPs/LLD over there, along with everything needed for Interview Preparation. It’s your one-stop interview prep platform for DSA, LLD, Core CS and more. Use code STRIVER to get the maximum discount, valid for the next few hours only ⏰

2025 Buyer’s Guide to International Payments Selecting the right cross-border payments provider requires careful evaluation across key areas to ensure compliance, efficiency, and reliability. 1. Regulation and Compliance Global payments are subject to complex regulations, making compliance a critical factor. Providers must hold the necessary licenses, such as Money Transmitter Licenses (MTLs), to legally operate in different jurisdictions. They should also streamline compliance with automated KYC checks and AML processes, reducing administrative burdens and ensuring adherence to evolving regulatory requirements. Strong compliance practices protect businesses, build trust, and enhance global reputation. 2. Currency Coverage A provider’s ability to support multiple currencies determines operational flexibility. Businesses should assess whether the provider covers their current intake and payout currency needs and offers competitive conversion rates to minimize costs. Future scalability is also important—providers should be able to support expansion into new markets, particularly emerging economies, ensuring businesses can adapt to global opportunities. 3. Service Reliability and Redundancy A robust payments infrastructure ensures uninterrupted service, preventing financial losses and operational disruptions. Providers should offer built-in redundancy, maintaining multiple banking partnerships to continue processing payments even if one fails. Strong partnership networks enhance efficiency, while disaster recovery and contingency planning ensure uptime during technical or geopolitical disruptions. 4. Ease of Technological Integration A modern payments provider should simplify, not complicate, business operations. Providers must offer flexible integration options, including both manual processes and API-based automation. Developer-friendly APIs with clear documentation and technical support facilitate seamless implementation, while customizable workflows allow businesses to tailor payment processes to their specific needs. Sandbox environments for testing further improve the onboarding experience. 5. Speed and Transparency Fast onboarding, real-time payment tracking, and clear reporting tools are essential for smooth operations. Providers should enable businesses to start transacting within hours or days rather than weeks. Payments should be trackable like a package delivery, ensuring visibility and eliminating uncertainty. Additionally, 24/7 customer support and dedicated account managers help businesses resolve issues quickly and expand their payment capabilities when needed. Source Rail #fintech #payments #banking Brice Ali Alex Michele Nafis Monica Theodora Saleh Veronica Helen

Your revenue is growing. But your bank balance tells a different story. Here's why: Revenue on paper doesn’t mean money in the bank. Delayed payments, unexpected costs, and poor forecasting create a cycle of financial stress. But cash flow management fixes it. Here’s how: 1. Know your inflows and outflows.  → Track every dollar coming in and going out. Surprises kill businesses. 2. Invoice fast.  → Send invoices immediately. The faster you bill, the faster you get paid. 3. Set clear payment terms.  → Net-60 sounds good—until you’re the one waiting. 4. Create a cash buffer.  → One slow month shouldn’t put your business at risk. 5. Forecast cash flow.  → Look ahead. If a shortfall is coming, act before it’s a crisis. 6. Automate follow-ups.  → Payment reminders aren’t nagging—they’re protecting your business. Profit looks good on paper. But cash keeps the lights on. Control your cash flow, and you control your business. Ignore it, and it will control you. #cashflow  #business #growth

If you have a profitable business but it seems you are rarely able to take any cash out (because it's sitting in your customers' bank accounts)-- this one is for you! I go through the best way to collect money from your customers so you can get paid faster. I share: -The difference between letting customers pay you (push) vs. pulling money automatically (pull) -What credit card and ACH fees mean for your business -Why your payment tools should work together with your other systems -Common money mistakes we see in QuickBooks Online (QBO) -Why someone on your team should be in charge of payment problems I also share real examples from businesses we’ve helped at Momentum Accounting, Inc. and give you a simple plan to get paid faster with fewer headaches. Check it.

Improving payment delays and speeding up the time it takes your company to get paid ALWAYS begins with this… Understanding WHO is paying on time and who is not. It still surprises me that many finance leaders are not fully aware of their Days Sales Outstanding (DSO) or the credit exposure associated with each customer. This lack of knowledge can often extend to sales teams who may be selling to customers without being aware of their outstanding debts. Integrating basic visibility into accounts receivable can dramatically increase your company’s cash collection rate. When this visibility becomes a routine part of customer relations, it prevents difficult conversations down the line and becomes embedded in the customer journey. 💥 It comes down to this: The accounts receivable process should not be isolated from the customer experience. Customers, after all, go through a journey: they sign contracts, enjoy services, receive invoices, and then make payments. Recognizing payments as a fundamental part of this journey ensures that it gets the attention it deserves and remains a seamless cycle, encouraging future business with the company. So what needs to be done? To tackle late payments effectively, companies need to establish a structured process for accounts receivable. Many businesses, unfortunately, engage in this crucial task in a reactive manner— waiting until cash flow pressures mount. Instead, proactive and systematic processes should govern accounts receivable operations, running on predetermined timelines rather than reactive impulses. In reality, a significant portion of payment delays are due to technical issues such as missing invoices, lack of purchase order numbers, or issues with internal validation processes. By anticipating and addressing these technical barriers, companies can significantly speed up their cash collection across various industries. How do you see it? Any experiences to share? Would love to hear your thoughts in the comments.

Stop Leaving Money on the Table: The Softer Side of B2B Collections Before you close out the month (or the year), I need you to hear this clearly: Most businesses don’t lose revenue because they can’t sell. They lose it because they don’t collect. Here’s the truth no one talks about: B2B Collections isn’t about pressure. It’s about people and building relationships with Accounts Payable. It’s the softer side—the part that focuses on Problem Solving, Customer Service, Expressing Gratitude, and Relationship Building. These are the four keys that actually move an invoice from “sent” to “paid,” but too many companies skip them because they’re focused on aging reports. I learned this years ago when I worked for a small IT company outside Boston. On the surface, everything looked great. They had $8 million in sales “on the books” but not in the bank. When I stepped in, it wasn’t just about making calls or sending emails. I had to figure out what had happened on each account. I had to understand the story behind every unpaid invoice. Once I understood the story, I solved the problem, provided great customer service, thanked the Accounts Payable folks who processed the payments, and built real relationships that opened doors instead of shutting them. Using those principles the same ones I teach today, I recovered $6 million in 60 days. But even with that success, the company closed two months before the holiday season. That moment taught me something I’ll never forget: Collecting the money doesn’t guarantee a business survives but not collecting guarantees it won’t. AR professionals know this better than anyone. They carry the emotional weight of keeping the cash flowing, keeping the relationships intact, and keeping the operations running smoothly, often without recognition. So if your invoices are sitting at 30/60/90 days If you’re waiting for clients to “get back to you." If you’re hoping they’ll pay when they get around to it Let me be honest with you: You’re leaving money on the table. But the good news is you don’t have to. There is a way to collect outstanding invoices without damaging relationships, without sounding aggressive, and without feeling like you have to chase people down. It starts with understanding the softer side of B2B collections and focusing on the conversations that uncover why the invoice hasn’t been paid in the first place. Let’s get the money off the books and into the bank. Collect the Cash! The Sale is not complete until the Money is in the Bank.

𝗟𝗲𝘀𝘀𝗼𝗻𝘀 𝗹𝗲𝗮𝗿𝗻𝗲𝗱 𝗮𝘀 𝗮 𝗠𝗲𝗱𝗧𝗲𝗰𝗵 𝗖𝗘𝗢 As a CEO in the commercial-stage Medtech space, I’ve committed to sharing the real lessons from our journey at NeuraSignal, not just the wins but also the failures and hard-won insights. LinkedIn is often a highlight reel, but I believe there’s value in pulling back the curtain on the operational grit that makes or breaks a scaling business. 𝐓𝐨𝐝𝐚𝐲’𝐬 𝐟𝐨𝐜𝐮𝐬: 𝐀𝐜𝐜𝐨𝐮𝐧𝐭𝐬 𝐑𝐞𝐜𝐞𝐢𝐯𝐚𝐛𝐥𝐞 (𝐀𝐑) 𝐂𝐨𝐥𝐥𝐞𝐜𝐭𝐢𝐨𝐧𝐬. In Medtech, we obsess over clinical studies, FDA clearances, and commercialization milestones. But AR, the workflow of actually getting paid, is often overlooked. It’s critically important, yet deceptively complex when dealing with hospitals and healthcare systems. Two years ago, our AR collections averaged 151 days. Today, we’re down to 43 and, as of two weeks ago, at 0% overdue (see real data over the last two years). It wasn’t magic; it was a painful overhaul born from neglecting this area. Here are five lessons that might save you time and headaches: 𝐒𝐡𝐚𝐫𝐞𝐝 𝐫𝐞𝐬𝐩𝐨𝐧𝐬𝐢𝐛𝐢𝐥𝐢𝐭𝐲 𝐫𝐚𝐫𝐞𝐥𝐲 𝐞𝐪𝐮𝐚𝐥𝐬 𝐚𝐜𝐜𝐨𝐮𝐧𝐭𝐚𝐛𝐢𝐥𝐢𝐭𝐲. Splitting AR duties led to finger-pointing and delays. Assigning clear ownership created urgency and results. 𝐒𝐢𝐦𝐩𝐥𝐢𝐟𝐲 𝐟𝐨𝐫 𝐲𝐨𝐮𝐫 𝐜𝐮𝐬𝐭𝐨𝐦𝐞𝐫𝐬. Mapping every step revealed friction points. Fixes like sending invoices and proof of delivery immediately sped up payments. 𝐃𝐨 𝐧𝐨𝐭 𝐨𝐯𝐞𝐫-𝐫𝐞𝐥𝐲 𝐨𝐧 𝐬𝐨𝐟𝐭𝐰𝐚𝐫𝐞. Our ERP silently failed. Regular audits and manual checks became essential to avoid cash flow crises. 𝐇𝐚𝐯𝐞 𝐭𝐡𝐞 𝐜𝐨𝐧𝐟𝐢𝐝𝐞𝐧𝐜𝐞 𝐭𝐨 𝐝𝐞𝐦𝐚𝐧𝐝 𝐰𝐡𝐚𝐭’𝐬 𝐨𝐰𝐞𝐝. Hospitals are partners, but also customers. A culture of polite persistence reinforced our value and sustainability. 𝐋𝐞𝐚𝐝 𝐰𝐢𝐭𝐡 𝐞𝐦𝐩𝐚𝐭𝐡𝐲. 𝐇𝐞𝐚𝐥𝐭𝐡𝐜𝐚𝐫𝐞 𝐢𝐬 𝐦𝐞𝐬𝐬𝐲. By tailoring support, such as custom invoice formats, we built stronger relationships and got faster resolutions. These details will never make headlines, but they are the foundation of a viable Medtech business. Ignoring them nearly derailed us, while mastering them has been transformative. Thank you to our commercial partners for the trust and to the NeuraSignal team for turning lessons into action. 𝙒𝙝𝙖𝙩 𝘼𝙍 𝙥𝙞𝙩𝙛𝙖𝙡𝙡𝙨 𝙝𝙖𝙫𝙚 𝙮𝙤𝙪 𝙨𝙚𝙚𝙣 𝙞𝙣 𝙈𝙚𝙙𝙩𝙚𝙘𝙝 𝙤𝙧 𝙗𝙚𝙮𝙤𝙣𝙙? 𝙎𝙝𝙖𝙧𝙚 𝙞𝙣 𝙩𝙝𝙚 𝙘𝙤𝙢𝙢𝙚𝙣𝙩𝙨 𝙖𝙣𝙙 𝙡𝙚𝙩’𝙨 𝙡𝙚𝙖𝙧𝙣 𝙩𝙤𝙜𝙚𝙩𝙝𝙚𝙧.