Adjusting Your Collections Policy

We've discussed a few financial strategies to implement now. Sometimes an easy way to improve your cash flow is to adjust your collection policies. Here's more detail to get you started today!


From TAB-Scottsdale's Business Owner Blog:


"Good times or bad, in order to run a good business, you have to be diligent about collecting your money. The collection process starts the first day the customer decides not to pay on time. I have been on both sides having run healthy companies and having turned around a Chapter 11 company. The ruder the people were the further down the pay list they went. However, if someone was willing to work with me, I would try my best to get them at least some money. Some general collection policies are important in these difficult times."

1. "Have a 30 day, 60 day, 90 day reminder letters prepared, and send them out religiously.
2. As an owner of the company or decision maker do not make the first calls. Otherwise, you are immediately on the spot to start negotiations and have no room to strategize what the next step should be."

Read more....