What are some ways to improve my receivables?
Author: Charly Applegate
Website: http://www.Cashflow-Answers.com
Added: Fri, Aug 11, 2006 10:39:57
Category: Cash Flow Questions
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Receivables are simply cash amounts that individuals or other businesses owe you. It is indeed hard to manage receivables, especially when your debtors make late payments, or sometimes no payment at all. In order to improve the collection of your receivables and avoid crippling your business, try some of these suggestions:
1. A written contract may help you improve your receivables. Once you and your debtor both sign it, it means that he agrees on the terms of payment specified in the contract.
2. Establish a clear credit policy.
3. Before offering credit to anybody, check their credit history. You can contact credit bureaus and bank references to find out if they have a good credit rating.
4. Establish credit limits and enforce them.
5. Impose penalties on overdue accounts. It will prompt most debtors to pay on time.
keywords: Cash Flow | Cashflow | Receivables | Accounting About the Author:
Charly Applegate answers frequently asked cash flow questions and factoring questions at PrettyGreatAnswers.com.
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