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We know that cash flow is the lifeblood of any growing business. You might be selling your product or services like crazy, but your growth hits a wall if your customers stick to slow payments. Hence, tracking and fixing how quickly you are getting paid is crucial. And that’s where your accounts receivable turnover comes into play, a simple ratio showing how quickly your business collects those hard-earned dollars.
But of course, asking your clients to pay is hard, and you might think it could hurt the relationship. You want to speed up payments, but not at the cost of your customer relationships. No one wants to become that brand, the one that badgers clients like a credit card call center gone rogue.
You don’t have to choose. There are definitely better and empathetic ways to improve your AR turnover while keeping your customers loyal, happy, and impressed by how easily you pay.
What is accounts receivable turnover?
Accounts receivable turnover is a way of measuring how quickly you collect money from customers after making sales on credit. It tells you how many times your invoices cleared in a given period of time which is usually a year.
Accounts Receivable Turnover = Net Credit Sales ÷ Average Accounts Receivable
So, if you made $50,000 in credit sales and your average receivables balance is $10,000, your turnover ratio would be 5. That means you collected payments five times in that year.
Now, what’s a “good” accounts receivable turnover?
Why does this matter? Every day, your cash sits in someone else’s business bank account, and you’re missing out on growth, investing opportunities, or even paying your bills on time.
In short, the higher your AR turnover, the better your cash flow, and the healthier your business.
Innovative ways to improve AR turnover without hurting relationships
Speeding up payments doesn’t have to mean chasing your clients with awkward phone calls or annoying emails. The best AR strategies feel invisible; they quietly guide customers to pay on time while keeping the relationship solid.
Here’s how to do it:
Set clear expectations upfront
Don’t try to hide your invoice payment terms in the fine print. You need to be crystal clear from day one. Let your customers know when payments are due, what the late fees are (if any), and how they’ll get their invoices.
When expectations are clear, and conversations are honest, there are fewer surprises, and that usually means you get paid faster.
Send invoices that don’t need a decoder ring
You’d be shocked how many delayed payments happen because invoices are confusing. Line items are unclear, totals don’t add up, or the layout makes it hard to tell what’s owed.
Keep it clean, branded, and simple. Use plain language, break down charges, and always include due dates and payment instructions front and center. According to a Gaviti study, clear invoicing reduces customer service inquiries and increases on-time payments by up to 20%.
Make it ridiculously easy to pay
Don’t make your customers jump through hoops to give you money. If possible, accept multiple payment methods, such as bank transfer, cards, ACH, and even real-time payments.
You can include a “Pay Now” button directly on your digital invoice. It will make it easier for your clients to pay.
Automate gentle, professional follow-ups
Forget the awkward “just checking in…” emails. Use automation tools to schedule polite reminders before and after due dates. A friendly nudge at just the right time can make all the difference, saving your team a ton of time.
A joint study by PYMNTS and FlexPay revealed that businesses monitoring failed payments closely recovered 43% more revenue and saw 37% less lost income from bad debt than those that didn’t, proof that combining smart tracking with thoughtful follow-up pays off in a big way.
Offer flexible payment options for key accounts
Not all customers are the same. Offering split payments, extended terms, or instalment plans can go a long way in keeping the relationship strong for your high-value clients while still getting most of your money sooner. Customers who know they can talk to you about payment flexibility are less likely to ghost you.
Resolve disputes fast and with grace
When customers flag an issue, don’t let it sit in the inbox. Resolve it quickly and professionally. It will make your customers happy and speed up the payment process. Unresolved invoice disputes contribute to delayed payments, and often, the delay isn’t even the customer’s fault.
Your job? Be proactive, be kind, and get it fixed fast.
Use tech to make the whole process smoother
There’s no award for managing accounts receivable with spreadsheets. Modern AR platforms like Forwardly, Duplo, and Gaviti let you automate invoicing, follow-ups, reconciliation, and reporting.
And the bonus? Many of these platforms also improve the customer experience, giving your clients access to their invoice history, payment portals, and support with just a click.
Want faster payments without souring relationships? Start here. Most of these moves are simple, low-effort tweaks, but together, they can seriously boost your AR turnover and customer satisfaction.
Train your AR team in relationship-centred collections
Your AR team isn’t just there to collect money; they’re also part of your customer experience. That means they need more than spreadsheets and scripts. They should be able to handle tough payment conversations with empathy and professionalism.
Let’s be honest: no one enjoys a call about an overdue invoice. But when it’s handled calmly, respectfully, and with a helpful attitude, it can actually build trust, not break it.
Here’s how to train your team to collect payments like pros (and maybe even stay on the client’s holiday card list):
Shift the mindset from “collections” to “collaboration”
Train your team that their job isn’t to “hound” customers, it’s to help them fulfill a commitment. That subtle mindset shift can turn an awkward interaction into a productive conversation.
Instead of “We need that payment ASAP,” try “Just checking in to see if there’s anything we can do to help wrap up this invoice.” It changes the tone completely. You’ll see for yourself.
Coach on tone, not just scripts
Templates are helpful, for sure. But tone is everything. Your reps must be trained to sound warm, professional, and human, especially in emails and calls. A little empathy goes a long way.
“Hey John, I understand things get busy. Just sending a friendly reminder…” works way better than “Per our previous communication, this payment is overdue.”
Create playbooks for tricky scenarios
Late payment? Dispute? Ghosting client? Give your team ready-to-go response templates and escalation paths. It keeps communication consistent and removes the guesswork.
Plus, having a structure helps your team stay calm and professional, even when the customer isn’t.
Reward relationship-building, not just speed
Yes, the goal is to collect faster. But don’t just track how many days it takes; track how much money comes in. Celebrate the reps who solve disputes kindly, keep clients happy, and get paid without a fuss.
When your team feels empowered and appreciated, they perform better, and your customers feel it too. Training collectors to focus on collaboration over confrontation would lead to better cash flow and improved customer retention. Because at the end of the day, it’s not just about money in the bank, it’s about how you earn it.
Faster payments and stronger relationships can co-exist
The old-school thinking says: “If you want to get paid faster, you’ve gotta push harder.” But honestly? That’s outdated and kinda exhausting. Modern AR isn’t about increasing the pressure but expanding the process. Clear invoices, smooth payment options, thoughtful automation, and a relationship-first mindset speed things up without turning customers off.
A customer who pays late but stays happy is still better than one who pays once and never returns. So, here’s your north star: Be the kind of business that makes it easy to pay, and even easier to stay.
Ready to speed up payments without hurting customer relationships? With Forwardly, you can automate your AR, from sending clean, invoices to offering flexible and faster ways to pay. You can streamline your cash flow without any monthly subscription fees.
Get paid faster, with zero friction. Try Forwardly today.
