10 Cash Flow Strategies for a Successful Business
Strategy 4: Manage your debtors
A sale isn’t a sale until the money is in the bank. A well managed debtors system is
critical for a successful business. Ensure your debtors system has preventative
measures as well as a step by step plan to recover overdue accounts.
Some examples of how to improve the debtors system:
Credit checks for all new customers.
Receiving deposits on signing of contract.
Discounts offered for early payment.
Make it as easy to pay as possible. Offer to take credit card details to move the
risk to the credit card company.
Send out invoices immediately.
Regularly review aged receivable report and consistently follow a step by step
plan to follow up overdue accounts.
If the customer cannot pay the whole amount, be flexible and arrange a
payment plan. Take the first payment straight away while on the phone by asking them to pay by credit card.
© Copyright 2010 by Scott Richards of Beyond the Numbers