If you’ve been successful in business it’s likely your local neighborhood collections agency has come to visit. What about those promises they make to collect, while you only pay for results.
If you can’t trust every customer to pay on time and salvage yards will hurt customer relationships, what is left? Progressive businesses have moved towards the CASH COLLECTION SYSTEM model.
With all the talk of “Financial Economic Crisis“, it seems time to stop extending credit, right? The truth is that in many industries this just isn’t possible, and even if it is possible for you, it is not advisable even if an account is overdue.
In the 1990’s when my clients owed me more than $325,000.00 in receivables, I got a hard lesson on collecting past due money. Cash Management Secrets is about helping you avoid the mistakes I made. Here are a few tips to get you started:
Most of your customers are honest hard working professionals, so why are their so many problems getting paid for work you do. You’ll often get stung by your best customers if you don’t understand what I’m about to share here.
If using collections will bring in late accounts at a lower cost then addressing the issue in house, then which type of collections firm do you use. Here are some of the different types of collections agencies and why you might consider each.
Remember, “The Little House on the Prairie“? I saw a re-run on a station my kids were watching, and it took me back to when I used to watch it as a kid myself. But what does that have to do with business credit and collections?
It is bound to happen in today’s economy, a customer requests an extension. They are willing to talk with you, never avoiding your calls, but you still never see the check. Why is it that so many late pay accounts lie?
Not every contract is a profitable one, especially when you aren’t considering the true costs of production. Not knowing a companies burden rate gets more business-to-business firms in trouble than anything else. Why is “burden rate” so important?