Cash Management Secrets

Proven cash management strategies that improve cash flow, collect past due money, and increases profits in tight credit markets.

Collecting Past Due Receivables

Every business has overdue accounts, it's a fact of life. When you know how you can collect these funds quickly. Here are a few tips to get you started:

• Get started today, don't wait -- The longer you take, the harder it will be to collect receivables due you. Make sure your staff stay on top of accounts, the faster they act, the better chance you'll have getting your money.
• Use a collections schedule -- Pick a day to call on accounts and stick to it. The more regular you can be about your collections efforts the better your results. Plan to start before an account is overdue.
• Be flexible and firm -- Allow customers to make payments then hold them to any arrangement. Know when you'll send an account to an outside agency.
• Know when to write off -- You can spend more than an account is worth if you're not paying attention. To prevent this problem, set a predetermined level at which you write off an account.

Collecting past due receivables doesn't have to be difficult. In a future lesson I'll share with you more strategies. Take action right now, get on your overdue accounts before they get the better of you.

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Justin Hitt with Cash Management Secrets shows entrepreneurs and business owners how to get more of their cash quickly by improving sales and receivables management. For independent solutions and insights visit http://CashManagementSecrets.com/

Posted by Justin Hitt on November 9, 2006 10:02 PM | Permalink

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