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Debtor management advice for SMEs

Try the following debtor management tips, from Dun & Bradstreet, to ease your cash flow:

*Set clear policies at the outset of a credit agreement.

*Get a signed contract.

*Always conduct a credit check prior to the extension of credit.

*Issue invoices promptly.

*Monitor your accounts receivable on an ongoing basis.

*Gradually escalate pressure on your debtors.

*Be prepared to address individual circumstances.

*Start the collection process the day after the account becomes due.

*Cease the extension of credit on overdue accounts.

*Never be afraid to ask for help and don’t wait too long to call in the experts.

*Sign up to CreditorWatch to expose bad debtors and be alerted when the businesses you trade with fail to pay.

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