Collection is Critical
Do not delay in collecting your receivables
For a bunch of emotive reasons, business owners will often neglect to collect and end up in a cashflow crisis which they think is not their fault – wrong!
What gets measured gets managed and if there is no measurement, there is no management.
The situation is easily fixed by simply updating the numbers weekly – do not leave it till the end of the month because that just defers the problem – measure the debtors ledger weekly and you will naturally chase it weekly then you really will achieve a result which improves monthly.
As for the chasing, there are a number of auto emailers available which can be helpful as many clients just need a reminder. Then there are auto SMS texters and finally a phone call which is tailored to suit each person but I always recommend starting with the poverty card.
Often people haven’t paid because they are a bit tight on cashflow themselves but if you have a need more compelling than theirs, they will help you out. Perhaps a shipment due that week or a bill that needs paying urgently, typically debtors will respond to such a request.
The easiest option of all is to simply outsource the whole job to an expert like “Be Paid” who will tidy the situation up and keep it that way.
Closing the gap between getting paid and having to pay makes a huge difference to your cashflow and cost of doing business – get onto it and keep on it!!