The Small Business Specialists
Phone: 13 12 49
Changing your terms of payment can immediately improve credit management issues.
If possible, always try to get paid up front. If you invoice up front you can avoid the cost carrying others' debts for months. For example, if your terms are 30 days and you invoice at the end of the month, customers have between 30 to 60 days to pay. You'll also avoid losing money from bank charges, because you may be going into overdraft while you’re waiting to be paid.
If your business can't invoice up front, you should still set up a process for quickly dealing with debtors, and never delay dealing with bad debtors. The faster you chase up your bad debtors the better your chances are of getting paid. Consider including:
Our small business briefs are summaries of essential information and the credit management information outlines commonly used policies and procedures may be appropriate for your business.
Understanding Your Business Financials workshop
This easy-to-follow workshop provides ways to identify the financial information you need to:
– know how your business is performing;
– make key financial decisions;
– identify which figures you should track regularly, and
– spot if there’s a problem in the business that needs to be fixed.