Cash Is King

Posted: 10 Oct 2010 in Blog Business Advice

A key factor in the success of any business is how well it manages its cash-flows. Credit control plays a critical part in this process. Remember: a sale is not a sale until the money is in your bank account!

Credit control is about collecting the money owed by customers in the fastest and simplest way possible. Tips for improving this process are:

  • Ensure your terms of business are defined and agreed with your customer/client
  • Have a clearly defined credit policy and collection routines and follow them
  • Send your invoices promptly
  • Encourage customers to pay electronically
  • Reduce invoicing errors and issue credit notes speedily
  • Chase debts before the due date
  • Issue regular payment reminders and constantly follow-up
  • Stop supplying those customers that are long or persistently overdue
  • Prioritise the credit control work to maximise results

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