When starting a business it is important to realize that cash is its lifeblood. Without it a business will die.
The importance of a strong debtor collection system cannot be overstated, as it provides the business with much needed cash. A systemised method is the best approach. It also means your staff won't get distracted away from their normal areas of responsibility to other matters such as resending invoices or chasing up debtor queries.
Download your free guide to managing debt recovery
This free guide outlines the best way to establish a debt collection policy for your business, covering key elements including:
- how to assess clients before commencing dealings
- the number of days a debt is outstanding before seeking payment
- the steps to take prior to legal action.
This article originally appeared on the Ask Us How website. NSW Business Chamber Members can access this site, which features hundreds of practical articles and other resources to help you manage and grow your business.