Businesses forget that it isn’t sales that pay the bills, but payment for that stock or service. While chasing debts seems to be the norm for SMEs, there’s a better way to deal with slow payers.
Develop a credit policy and explain it to your customers or clients prior to closing the sale. The policy should state when payment is expected in relation to the contract of sale, and the consequences if they do not adhere to the payment terms, such as charging interest or collecting additional payment.
Make sure you and your employees know how to enforce this policy when the need arises or customers will walk all over you, leaving you burdened with debt.
