Tip No. 1: Collect your debts
If you need to offer credit to your customers make sure that you ask for any outstanding amounts to be paid by a certain date and follow up with regular demands for payment backed by a debt collection strategy. Your initial invoice should have the credit terms clearly shown and this needs to be given to the client at the time of the transaction.
Modern computer programs allow you to send invoices with emails so there is no excuse for not keeping your customers informed that they owe you money. Keep a monthly report of aged debtors that shows who owes what over 30 day, 60 day and 90 day periods and use this information to set yourself a target of no more that 20% of debt being over 30 days.
Back to Ten Tips

