10 Cash Flow Strategies for a Successful Business by Scott Richards - HTML preview
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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.
§ Credit checks for all new customers.
§ Receiving deposits on signing of contract.
§ Discounts offered for early payment.
§ Send out invoices immediately.
§ Bank regularly.§ 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.