In recent years, the way in which we undertake our business operations has changed. It is now more important than ever for businesses to keep on top of their finances, particularly in relation to cash flow. In order to achieve this, it is essential that you ensure a positive cash flow is maintained by correctly managing your overdue accounts and debt collection.
If you offer credit facilities to certain customers, such as account holders, you must agree at the outset of such credit arrangements as to the expectations involved by both parties. Written conditions that clearly state the terms of any account, such as the number of days credit that may be allowed until payment is due, along with the recovery procedures that will be adopted should the account not be paid within the agreed time scale, must be provided to each such customer. You must make these Terms and Conditions part of your everyday business practise.
For example, if the normal procedure is to engage the services of Debt Collection companies after the account is 90 days overdue, then that is what should happen. The longer you leave a debt outstanding, the harder it may be to ultimately collect and hence the longer that money is not within your business, paying for day-to-day operating costs or even to utilise for capital investment.
In this present economic climate, there is also the very real danger that if you leave a debt uncollected for any extended period of time, that debtor may become insolvent, dramatically reducing your chances of recouping your money. It also greatly increases the time and cost involved in seeking some form of retribution.
The reasons given for not actively chasing overdue debts can range from the time that would be taken from completing other tasks, to the lack of knowledge regarding the actual legalities of debt collection. There can also be the embarrassment factor when asking for money, especially when a long-term business relationship is involved.
This is not an issue to be overlooked or to become complacent about. You have to keep in mind that debt collection is an important daily business function and one that may eventually have a resounding impact on the very survival of your business.
If you find that, for whatever reason, debt collection is not being correctly managed within your business, there is help available. Debt Collection companies are able to work with your organisation to introduce credit management services, which in turn can be tailored to suit the individual requirements of your business in relation to debt collection. These may include drafting and issuing debt collection letters, actual recovery of the debts and even instigating legal proceedings, should this be required.
As a professional, third party company, they have the knowledge, expertise and resources to actively and persistently pursue payment of your overdue accounts without damaging your business relationships. By engaging such Debt Collection companies, you are retaining professionals to do what they do best, thus freeing you up to do what you do best – namely running and building your business.
If you offer credit facilities to certain customers, such as account holders, you must agree at the outset of such credit arrangements as to the expectations involved by both parties. Written conditions that clearly state the terms of any account, such as the number of days credit that may be allowed until payment is due, along with the recovery procedures that will be adopted should the account not be paid within the agreed time scale, must be provided to each such customer. You must make these Terms and Conditions part of your everyday business practise.
For example, if the normal procedure is to engage the services of Debt Collection companies after the account is 90 days overdue, then that is what should happen. The longer you leave a debt outstanding, the harder it may be to ultimately collect and hence the longer that money is not within your business, paying for day-to-day operating costs or even to utilise for capital investment.
In this present economic climate, there is also the very real danger that if you leave a debt uncollected for any extended period of time, that debtor may become insolvent, dramatically reducing your chances of recouping your money. It also greatly increases the time and cost involved in seeking some form of retribution.
The reasons given for not actively chasing overdue debts can range from the time that would be taken from completing other tasks, to the lack of knowledge regarding the actual legalities of debt collection. There can also be the embarrassment factor when asking for money, especially when a long-term business relationship is involved.
This is not an issue to be overlooked or to become complacent about. You have to keep in mind that debt collection is an important daily business function and one that may eventually have a resounding impact on the very survival of your business.
If you find that, for whatever reason, debt collection is not being correctly managed within your business, there is help available. Debt Collection companies are able to work with your organisation to introduce credit management services, which in turn can be tailored to suit the individual requirements of your business in relation to debt collection. These may include drafting and issuing debt collection letters, actual recovery of the debts and even instigating legal proceedings, should this be required.
As a professional, third party company, they have the knowledge, expertise and resources to actively and persistently pursue payment of your overdue accounts without damaging your business relationships. By engaging such Debt Collection companies, you are retaining professionals to do what they do best, thus freeing you up to do what you do best – namely running and building your business.
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