Do you want to know a silent killer for B2B businesses?
It's called DSO.
Days Sales Outstanding.
If your DSO is climbing, you're in trouble.
Here's why.
DSO measures the average number of days it takes for a company to collect payment after a sale has been made.
And guess what?
The longer it takes, the more cash flow problems you face.
This isn't just a minor inconvenience.
It's a business risk.
→ You're waiting longer to get paid.
→ Your cash reserves start to dwindle.
→ Your financial flexibility takes a hit.
→ Growth opportunities get shelved.
→ Worst case? You might even struggle to meet your own financial obligations.
So, what's the solution?
Push for annual upfront payments.
Here are some rocksolid reasons why:
Immediate Cash Flow Boost
When you receive annual upfront payments, you get an immediate injection of cash.
No more waiting around.
Financial Predictability
With upfront payments, you know exactly what your revenue looks like for the year.
This makes budgeting and planning a breeze.
Reduction in DSO
Upfront payments eliminate the need to chase invoices.
Your DSO plummets.
Customer Commitment
Customers who pay annually are more committed.
They've made a financial investment in your product.
Discounting Pressure
When you offer an annual payment option, you can reduce the need to discount heavily.
You're providing value upfront, and customers see that.
Enhanced Customer Satisfaction
Believe it or not, many customers prefer the simplicity of a single annual payment.
It saves them the hassle of monthly invoicing.
At Playter, we’ve seen businesses thrive by switching to annual upfront payments.
It's not just a tactic; it's a strategy.
And it works.
So, if you're a sales leader or a midlevel sales professional, it's time to rethink your payment terms.
Push for annual upfront payments.
Combat the negative effects of DSO.
Transform your sales process.
Ready to make the switch?
Let’s talk.
