Important Credit Management Tips for Assurance and Security
In most cases, large businesses will often have their own internal credit and also accounts departments which involve teams of procurement officers, account handlers, credit controllers and also legal teams which makes it difficult in tackling issues head on because it usually need some time in speaking to the person who is responsible on your account and also getting paid.
Every time that a business will not be able to pay you on time, it will start to strangle cash flow that makes it a lot difficult in paying employees and creditors in the right time for small business owners.
During the first quarter of the year 2014, the number of business liquidations were increased more than 50% compared to the previous quarters.
For some people's experience as a professional credit management consultant and business owner for about 20 years, they say that the number one cause of business failures would be due to inadequate cash flow which is usually bought by late or the non-payment of the raised invoices.
In the article below, you will learn about some tips for an effective credit management for small businesses. There are in fact some simple tips and methods in order to reduce the opportunity of not getting paid.
The first would be to get the assurance that you have the contract signed by the individual who is authorized in doing it. You should never accept a signature from the receptionist.
You also need to make certain that the delivery notes will be signed and to ensure that they state that the goods were delivered in a condition to where they are satisfied. You have to make sure that you get a satisfaction note by the end of contracts. An article from http://www.ehow.com/about_5600707_credit-management-analysis.html will give you a lot of facts too.
You also should be tough when it comes to your credit terms and if you have agreed 30 days, you should make certain that all your clients and customers will stick on it.
You also should never be afraid in losing clients. You need to remember that when they don't pay you, they are not worthy for you.
You have to take note that you always should take note that when you wanted to take clients to court in order to recover unpaid debts, the court will be expecting some documents, which is why you should see to it that you keep all the records updated. It is in fact best that you search for a software which based on credit management handled by a manager who took a course from http://www.lpcredit.co.uk/professional-credit-management-courses/ that helps in storing the documents and record the dates and times of calls and letters.
