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.