Build A Better Business – Invoice Promptly & Collect Your Debts!
You wouldn’t believe how common a problem this is. It maybe that once the sale is made you move on to the next sale and also many people find collecting debts a distasteful exercise and so don’t prioritise it.
Remember A SALE IS WORTHLESS UNTIL THE MONEY’S COMES IN!
There are many businesses that run on overdrafts and paying extra interest due to lack of billing promptly and poor collection processes and procedures. In many cases the extra interest payments far out way the cost of employing a credit controller to reduce debt collection periods.
Are you doing credit checks on prospective customers, are they high risk? Do you have a process in place once a debt goes 30 days overdue, 60 days overdue etc. I have a lot of experience of even large companies that didn’t bother spending time and effort collecting debts once they were over say a year old. The companies just got into bad habits. I made an immediate impact by going after these old debts.
Any business MUST have systems and processes in place to assess new credit customers, make sure you invoice promptly and that the debt is collected on a timely basis in accordance with your terms and conditions. For unpaid debts there needs to be an adequate process in place and it needs to be followed.
You can always also use a debt collection agency and invoice factoring is also an option.
It is often wise to separate the sales function and the collection function so that the business relationship is not compromised, but it depends on your business and the relationships you have with your customers.
Again I will re-iterate CASH IS KING. This mantra must never be forgotten as lack of cash is the number one thing that will definitely cause business closure very quickly.
Come and talk to us. We can assess whether your current processes and procedures are robust enough and help you design proper sales and credit control procedures that will save you paying the bank your hard earned profits and make sure you are collecting all