Cash flow is one of the, if not most, vital aspects of business success. It is the lifeblood of any business. Your business can be insanely profitable, on paper, but without cash flow it can still be insolvent. The ability to pay all its debts as and when they are due is fundamental. And of course, to be rewarded for your hard earned efforts does help make it all worth while.
Of course, many factors impact the cash flow of a business. One of the keys is a solid debt recovery process. All too often many businesses have all the right boxes ticked to generate a steady stream of pineapples yet stumble at the last hurdle – recovery. Whether it be for fear of upsetting valuable customers, poor internal processes or any of the myriad other excuses, the failure to implement reliable and simple recovery procedures for debtors can prove fatal to business success.
A debt recovery process is relatively simple. The real key to its success is discipline and consistency. If your customers know your terms and that you are serious about recovering payment for your product or service, they’ll pay you before they pay those other suppliers who tend to be somewhat lackadaisical about their approach to the money.
Try implementing these handy hints to assist your business with the debtor recovery process. And, on the off chance you don’t have a system in place, you can download below a number of useful templates for reminders, letters of demand and even a statement of claim for the Small Claims Tribunal. Remember, a customer is only a good customer if they’ve paid.
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