Collecting Past Due Accounts
What do you gain by winning a lottery sized settlement with a bankrupt company?
This is your cash flow situation when you allow your accounts receivable to grow. Getting the sale is wonderful, but collecting payment is the key to positive cash flow. Follow your credit policy with all clients. Don’t assume that because your contact is a nice person that you’ll get paid. Your contact may not control the purse strings of the company. Any special agreements with the company must be in writing. Should your contact leave the company, there would be no memory of any special agreement you may have made for payment. Just as you reconfirm flights and accomodations for an important trip, leave nothing to chance when it comes to collecting your past due accounts, if you want a positive cash flow.
Cheryl Cook works to develop business relationships where her experience, knowledge, and ideas can help improve the small business owner’s cash flow. As the Executive Director of Pro Money Inc., Cheryl conducts workshops with the Chamber of Commerce and teaches adult education classes on topics related to cash flow. Cheryl publishes an ezine every other week titled “Cash Flow Tips for Your Business.”
No Comments
No comments yet.
Sorry, the comment form is closed at this time.
