Update cash flow forecasts
Once it’s clear that a debt is going to exceed its credit terms, there are two things you must consider. If the second is the best way to go about recovering that debt, the first is of more immediate concern: your cash flow. Without that expected revenue coming in, the company may not have sufficient […]
Know your customer
With late payments and bad debts commonplace in the current climate, it’s becoming increasingly important to know your customer before committing to offering credit terms. The first step is therefore to obtain all the necessary business information, including their full trading name, legal status, registration number, address and the key contact details of the management […]
Review your sales ledger
A fundamental element of credit control is to know precisely when an invoice exceeds its credit terms. Without this knowledge, your credit control process will lose its efficiency and punctuality. It’s therefore important that your accounts department or credit controllers regularly review your sales ledger to ensure that your customers’ payment activity is always observed. […]
Improve your Credit control
Effective credit control is one of the most important aspects to running a successful business. Without money coming in on time, your business’s cash flow can be severely affected and the associated problems can quickly get out of hand. What many businesses fail to realise is that the process of avoiding the problems of late […]